Cardano Price Holds Gains and Faces Resistance at $0.70
Cardano (ADA) has been able to maintain its gains and is currently facing resistance near the $0.70 zone. The price of ADA is trading above $0.640 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $0.6350 on the 4-hour chart of the ADA/USD pair.
Cardano Starts Fresh Increase
After finding support above the $0.5650 level, Cardano has initiated a fresh increase. The price of ADA was able to surpass the resistance levels at $0.600 and $0.6220, entering into a positive zone alongside Bitcoin and Ethereum.
The bulls managed to push the pair above the $0.650 resistance zone, but encountered strong selling pressure near the $0.700 resistance zone. As a result, a high was formed near $0.7084, leading to a downside correction. The price dropped below the $0.6750 level.
Key Support Levels and Trend Line
The ADA price decline went below the 23.6% Fibonacci retracement level of the upward wave from the $0.5685 swing low to the $0.7084 high. However, ADA is still trading above $0.640 and the 100 simple moving average (4 hours).
Additionally, there is a key bullish trend line forming with support at $0.6350 on the 4-hour chart of the ADA/USD pair. This trend line aligns with the 50% Fibonacci retracement level of the upward wave from the $0.5685 swing low to the $0.7084 high.
Resistance and Potential Rally
The bulls are expected to remain active near the $0.6350 support level. On the upside, immediate resistance is anticipated near the $0.6750 zone, followed by $0.6920. The next significant resistance level is at $0.700.
If the price manages to close above the $0.700 resistance, it could trigger a strong rally towards the $0.750 region. Further gains may even lead to a move towards $0.80.
Downside Correction Possibility
In case Cardanoโs price fails to break above the $0.6750 resistance level, a downside correction might occur. The immediate support on the downside is near the $0.6350 level, with the next major support at $0.6220.
If the price breaks below the $0.6220 level, it could potentially test the support at $0.600, followed by a major support level at $0.5680.
Technical Indicators
The 4-hour MACD for ADA/USD is currently losing momentum in the bullish zone, indicating a possible shift in trend direction. On the other hand, the 4-hour RSI (Relative Strength Index) for ADA/USD is now above the 50 level, suggesting bullish momentum.
Conclusion
Cardanoโs price is currently holding its gains but facing resistance near the $0.70 zone. If the bulls continue to remain active above the $0.6220 support level, there is potential for a fresh increase in price.
However, if the price fails to break above the resistance levels and starts a downside correction, immediate support can be found near $0.6350 and $0.6220.
It is important to closely monitor the price action and key support and resistance levels to make informed trading decisions.
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