Charted: Cardano (ADA) Remains Strong Above 100 SMA, Why It Could Rally Again
Cardano’s price traded to a new multi-month high at $1.23 before correcting lower. ADA declined sharply below $1.00, but the bulls were active above $0.8500.
- ADA surged towards the $1.25 level before correcting lower against the US dollar.
- The price is still trading well above $0.9500 and the 100 simple moving average (4-hours).
- There is a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair could face hurdles near $1.06, but the overall trend seems to be positive.
Cardano (ADA) is Showing Bullish Signs
In the past few days, cardano’s price started a steady increase above the $0.9500 resistance. ADA price even cleared the $1.00 resistance and settled well above the 100 simple moving average (4-hours).
Finally, there was a break above the $1.10 level and a new multi-month high was formed near $1.23. Recently, there was a sharp downside correction below the $1.10 and $1.00 levels. The price even dived below the $0.9500 support level.
The price even tested the $0.8500 support level, but there was no close below the 100 simple moving average (4-hours). A low is formed near $0.8057 and the price is currently recovering. It climbed above the 50% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low.
Source: ADAUSD on TradingView.com
There is also a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair. The price is now showing a lot of positive signs above the $0.9500 level.
On the upside, there is a strong resistance forming near the $1.06 level. It is close to the 76.4% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low. A clear break above the $1.06 level could open the doors for a sharp increase towards the $1.20 level.
Dips Supported?
If cardano’s price fails to clear the $1.05 and $1.06 resistance levels, it could again correct lower. An initial support is near the $0.9500 level.
The main support is now forming near the $0.9000 level and the 100 simple moving average (4-hours). Any more losses below $0.9000 might risk of a break below $0.8500.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently above the 50 level.
Major Support Levels – $0.9800, $0.9500 and $0.9000.
Major Resistance Levels – $1.05, $1.06 and $1.20.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
