Cardano (ADA) On The Rise: Exploring Upward Momentum and Bullish Prospects

Cardano (ADA) On The Rise: Exploring Upward Momentum and Bullish Prospects

Cardano price started a steady increase above the $0.400 resistance. ADA is now consolidating gains and might aim for more gains above $0.4225.

• ADA price started a fresh increase and traded above $0.420.
• The price is trading above $0.4120 and the 100-hourly simple moving average.
• There are two key bullish trend lines forming with support at $0.4120 and $0.4080 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start a fresh increase unless there is a close below the $0.40 support zone.

Cardano Price Gains Traction

In the past few days, Cardano started a decent increase from the $0.3800 support zone. ADA climbed above the $0.40 and $0.4050 resistance levels, outperforming Bitcoin and Ethereum.

It even cleared the $0.420 resistance and tested $0.4225. A high was formed at $0.4225 and the price is now consolidating gains. There was a move below the $0.4220 and $0.4200 support levels. The price tested the 23.6% Fib retracement level of the upward move from the $0.3782 swing low to the $0.4225 high.

ADA price is now trading below $0.4120 and the 100-hourly simple moving average. There are also two key bullish trend lines forming with support at $0.4120 and $0.4080 on the hourly chart of the ADA/USD pair.

If there is another upward move, the price might face resistance near the $0.420 zone. The first resistance is near $0.4225. The next key resistance might be $0.4450. If there is a close above the $0.4450 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.4850 region. Any more gains might call for a move toward $0.50.

Downside Correction in ADA?

If Cardano’s price fails to climb above the $0.4225 resistance level, it could continue to move down. Immediate support on the downside is near the $0.4120 level.

The next major support is near the $0.4080 level and the second trend line. A downside break below the $0.4080 level could open the doors for a test of $0.400. The next major support is near the $0.3880 level.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.

Major Support Levels – $0.4120 and $0.4080.

Major Resistance Levels – $0.4200 and $0.4225.