Post by: Bitcoin on Dec 06, 2023, 08:29 am
Cardano (ADA) is gaining pace above the $0.40 resistance. ADA could rally if there is a clear move above the $0.432 and $0.450 resistance levels.
- ADA price is moving higher above the $0.400 pivot level.
- The price is trading above $0.415 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support near $0.410 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could accelerate higher toward the $0.500 level or even $0.550.
Cardano Price Starts Steady Increase
After forming a base above the $0.3750 level, Cardano started a steady increase. There was a break above the $0.388 and $0.400 resistance levels, but ADA lagged momentum like Bitcoin and Ethereum.
The price even climbed above the $0.420 resistance. A high was formed near $0.4293 and the price is now consolidating gains. It is trading above the 23.3% Fib retracement level of the upward move from the $0.3715 swing low to the $0.4293 high.
ADA is now trading above $0.415 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $0.410 on the 4-hour chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.4250 zone. The first resistance is near $0.432. The next key resistance might be $0.450. If there is a close above the $0.450 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.50 region. Any more gains might call for a move toward $0.550.
Are Dips Supported in ADA?
If Cardano's price fails to climb above the $0.432 resistance level, it could start a downside correction. Immediate support on the downside is near the $0.4150 level.
The next major support is near the $0.410 level and the trend line. A downside break below the $0.410 level could open the doors for a test of $0.388. The next major support is near the $0.372 level.
Technical Indicators
4 hours MACD - The MACD for ADA/USD is gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) - The RSI for ADA/USD is now above the 50 level.
Major Support Levels - $0.415, $0.410, and $0.388.
Major Resistance Levels - $0.432, $0.450, and $0.500.
Source: ADA Price Claims $0.40 And Recovery Could Soon Turn Into Rally (https://www.newsbtc.com/analysis/ada/ada-price-claims-0-40/)