Cardano Price Gains Momentum
Cardano (ADA) has seen a steady increase in price after establishing a base above the $0.500 level. The cryptocurrency outperformed Bitcoin and Ethereum by breaking through key resistance levels at $0.550 and $0.600.
ADA reached a new multi-week high at around $0.6802 before experiencing a minor decline. It is currently consolidating its gains but remains above the $0.500 mark and the 100 simple moving average (4 hours).
Bullish Trend Line Provides Support
A bullish trend line has formed with support near $0.6020 on the 4-hour chart of the ADA/USD pair. This trend line aligns closely with the 50% Fibonacci retracement level of the upward move from the swing low of $0.5220 to the high of $0.6802.
If ADA continues to climb, it may encounter resistance near the $0.660 zone, followed by $0.685 and potentially $0.700. A close above this level could trigger a strong rally, pushing the price towards the $0.800 region, and even potentially reaching $1.00.
Possible Downside Correction
If ADA fails to surpass the $0.685 resistance level, it could experience a downside correction. Immediate support can be found near $0.6200, followed by major support at the $0.600 level and the established trend line.
A break below the $0.600 level might lead to a test of $0.555, with further support near the $0.5220 level.
Technical Indicators
The MACD for ADA/USD on the 4-hour chart shows a loss of momentum in the bullish zone. The RSI for ADA/USD is currently above the 50 level.
Major support levels to watch are $0.620, $0.600, and $0.555, while major resistance levels are at $0.685, $0.700, and $0.800.
Hot Take: Cardano Set for Potential Growth
Cardano’s recent rally indicates positive momentum and potential for further growth. With support from a bullish trend line and trading above key resistance levels, ADA could continue its upward trajectory.
If the price can surpass the next resistance level at $0.685, a strong rally may follow, potentially pushing ADA towards the $0.800 mark and even reaching $1.00 in the coming weeks.
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