Charted: Cardano (ADA) Needs To Clear $0.11 For Hopes of a Fresh Rally
Cardano’s price is holding the $0.1000 support level and recovering higher. However, ADA must surpass $0.1085 and $0.1100 to start a fresh rally in the near term.
- ADA is facing a strong resistance near $0.1065 and $0.1085 against the US dollar.
- The price is trading nicely above the $0.1000 support and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.1100 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair is likely to start a fresh rally if there is a clear break above $0.1085 and $0.1100.
Cardano (ADA) is Facing Hurdles
Recently, cardano’s price struggled to gain momentum (unlike bitcoin) above $0.1100 and declined sharply. ADA broke the $0.1065 and $0.1050 support levels.
The bulls were able to protect the $0.1000 support and there is no proper close below the 100 simple moving average (4-hours). A low is formed near $0.1009 and the price is currently correcting higher.
There was a break above the $0.1035 level, plus the 23.6% Fib retracement level of the recent decline from the $0.1105 high to $0.1009 low. An initial resistance is near the $0.1060 and $0.1065 levels.
Source: ADAUSD on TradingView.com
The 50% Fib retracement level of the recent decline from the $0.1105 high to $0.1009 low is also near the $0.1060 level to act as a hurdle. The first major resistance is near the $0.1085 level. More importantly, there is a major bearish trend line forming with resistance near $0.1100 on the 4-hours chart of the ADA/USD pair.
To start a strong increase, cardano must clear the $0.1085 and $0.1100 resistance levels. The next key resistance is near the $0.1200 level, above which the bulls might aim a test of $0.1250.
Dips Supported?
If cardano’s price starts a downside correction, it is likely to find support near $0.1030 and the 100 simple moving average (4-hours).
The main support is still near the $0.1005 and $0.1000 levels (a multi-touch zone). If there is a downside break below $0.1005 and $0.1000, the price might start a strong decline. The next key support is near the $0.0900 level.
Technical Indicators
Daily MACD – The MACD for ADA/USD is struggling to move into the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for ADA/USD is currently recovering, but it is still below the 50 level.
Major Support Levels – $0.1030, $0.1005 and $0.1000.
Major Resistance Levels – $0.1065, $0.1085 and $0.1100.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
