Cardano Price Shows Signs of Recovery
Cardano (ADA) has experienced a positive trend after finding support above the $0.4720 level. The price has surpassed key resistance levels at $0.485 and $0.500, entering a bullish zone similar to Bitcoin and Ethereum.
An important development is the break above a bearish trend line with resistance near $0.510 on the ADA/USD pair’s 4-hour chart. Bulls have successfully pushed the pair above the $0.520 resistance zone, although they are facing resistance near $0.535.
ADA price is currently trading above $0.512 and the 100 simple moving average (4 hours). It has also surpassed the 23.6% Fibonacci retracement level of its recent increase from the swing low at $0.4718 to the high at $0.5354.
On the upside, immediate resistance is seen near the $0.535 zone, followed by $0.545 and $0.550. A close above the key resistance at $0.565 could trigger a strong rally towards the $0.600 region, potentially leading to further gains up to $0.620.
Possible Downside for ADA
If Cardano fails to break above the $0.535 resistance level, it may experience a fresh decline. Immediate support is expected near the $0.520 level.
The next major support lies around $0.5040 or the 50% Fibonacci retracement level of its recent increase from the swing low at $0.4718 to the high at $0.5354. A downside break below this level could open doors for a test of $0.485, with further support near the initial base at $0.4720.
Technical indicators show that the MACD for ADA/USD is losing momentum in the bullish zone, while the RSI is now above the 50 level.
Disclaimer: The information provided here does not constitute investment advice or financial advice of any kind. Conduct your own research before making any investment decisions.
Hot Take: Cardano (ADA) Poised for Further Upside
Cardano’s recent recovery above key resistance levels suggests a potential uptrend for ADA. With support from Bitcoin and Ethereum’s positive momentum, ADA price has surpassed several hurdles and is now eyeing further gains.
A clear break above the $0.535 and $0.550 resistance levels could trigger a strong rally towards $0.600 and beyond. However, if ADA fails to overcome these resistance levels, a downside correction may occur with immediate support at $0.520.
Keep an eye on technical indicators like MACD and RSI for further insights into ADA’s price movement. As always, it is important to conduct your own analysis and consider various factors before making any investment decisions.
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