Charted: Cardano (ADA) Corrects Gains, Why It Could Rally Again To $1.5
Cardano’s price gained over 25% this week and it broke the key $1.200 resistance zone. ADA is likely to continue higher above the $1.300 and $1.400 resistance levels.
- ADA is showing a lot of positive signs above the $1.200 pivot level against the US dollar.
- The price is trading nicely above $1.2000 and the 100 simple moving average (4-hours).
- There was a break above a crucial bearish trend line with resistance near $1.050 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair might correct lower, but the larger trend is up and it could rise above $1.500.
Cardano (ADA) is Correcting Gains
After forming a support base above the $0.9980 and $1.00 levels, cardano’s price started a fresh increase. ADA price broke the $1.120 and $1.200 resistance levels to move into a positive zone.
There was also a break above a crucial bearish trend line with resistance near $1.050 on the 4-hours chart of the ADA/USD pair. The pair even cleared the $1.220 resistance zone. It is now trading nicely above $1.2000 and the 100 simple moving average (4-hours).
ADA climbed towards the $1.480 resistance and high is formed near $1.472. Recently, there was a downside correction below the $1.335 support zone zone. The price also spiked below the 50% Fib retracement level of the upward move from the $1.001 swing low to $1.472 high.
Source: ADAUSD on TradingView.com
However, the bulls are protecting the key $1.2000 support zone. The price is also holding the 61.8% Fib retracement level of the upward move from the $1.001 swing low to $1.472 high.
If there is a downside break below the $1.200 support and the 100 simple moving average (4-hours), there could be a trend change. In the stated case, the price could decline towards the $1.050 support.
Fresh Increase?
If cardano’s price stays above the $1.200 support, it could start a fresh increase. On the upside, an immediate resistance is near $1.300 and $1.335.
The next major resistance is near the $1.400 and $1.405 levels. A clear break above the $1.400 resistance will most likely open the doors for a steady increase towards the $1.500 level in the near term.
Technical Indicators
4-hours MACD – The MACD for ADA/USD is slowly gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is now testing the 50 level.
Major Support Levels – $1.200, $1.180 and $1.050.
Major Resistance Levels – $1.300, $1.335 and $1.400.
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, @KhareemSudlow
