Charted: Cardano (ADA) Showing Signs of Fresh Rally, But 100 SMA is the Key
Cardano’s price declined heavily towards $0.1300 before correcting higher, similar to bitcoin. ADA must clear the $0.1500 resistance and the 100 SMA (H4) to start a strong increase.
- ADA remained well bid above the $0.1300 level and corrected higher against the US dollar.
- The price is struggling to clear the $0.1500 resistance and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $0.1500 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 $0.1500 and $0.1540.
Cardano (ADA) is Showing Positive Signs
In the past few days, cardano’s price corrected gains from well above the $0.1500 level. ADA price broke the $0.1450 support level and settled below the 100 simple moving average (4-hours).
The decline gained pace below the $0.1400 level, but the bulls were able to defend the key $0.1300 support zone. A low is formed near $0.1305 and the price is currently rising. There was a break above the $0.1350 and $0.1400 resistance levels.
ADA price even climbed above the 23.6% Fib retracement level of the recent decline from the $0.1688 swing high to $0.1305 swing low. However, the price is struggling to clear the $0.1500 resistance and the 100 simple moving average (4-hours).
Source: ADAUSD on TradingView.com
There is also a major bearish trend line forming with resistance near $0.1500 on the 4-hours chart of the ADA/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $0.1688 swing high to $0.1305 swing low.
A successful break above the trend line and a follow up move above the 100 simple moving average (4-hours) could open the doors for a fresh rally. The next major resistance is near the $0.1780 level.
Fresh Decline?
If cardano’s price fails to clear the trend line resistance and $0.1500, there is a risk of a fresh decline. An initial support is near the $0.1400 level.
The main support is now forming near the $0.1300 level. Any more losses could lead the price towards the breakdown zone and a key buy area at $0.1200 in the near term.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is struggling to gain pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is just below the 50 level.
Major Support Levels – $0.1400, $0.1300 and $0.1200.
Major Resistance Levels – $0.1500, $0.1540 and $0.1700.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
