Cardano (ADA) Price Following Uptrend, More Gains Seem Likely
- ADA price formed a strong support near the $0.0420 level and later climbed higher against the US Dollar.
- The price gained momentum above the $0.0440 and $0.0450 resistance levels.
- There is a key ascending channel in place with support at $0.0460 on the 4-hours chart (data feed via Kraken).
- The price could decline a few points, but it remains well supported above the $0.0445 level.
Cardano price is placed nicely in an uptrend against the US Dollar and Bitcoin. ADA might correct lower, but it is likely to climb above the $0.0475 level in the near term.
Cardano Price Analysis
After testing the $0.0400 support, cardano price started a solid upward move against the US Dollar. The ADA/USD pair climbed above the $0.0420 level and later consolidated for a few sessions. Finally, a solid support base was formed and the price started a strong rally. The price broke the $0.0440 and $0.0450 resistance levels to move into a positive zone. There was even a close above the $0.0450 level and the 55 simple moving average (4-hours).
Buyers pushed the price above the $0.0475 level and a new monthly high was formed at $0.0482. Recently, the price corrected lower below the 23.6% Fibonacci retracement level of the last leg from the $0.0420 low to $0.0482 high. There was even a break below the $0.0470 level, but the $0.0460 level is acting as a support. Besides, there is a key ascending channel in place with support at $0.0460 on the 4-hours chart. Below the channel support, the next support is near the $0.0450 level.
The 50% Fibonacci retracement level of the last leg from the $0.0420 low to $0.0482 high is also near the $0.0450 level. The main support is near the $0.0445 level and the 55 simple moving average (4-hours). It also coincides with the previous resistance zone near $0.0444. Therefore, if there is a downside correction, the price is likely to find a strong buying interest near the $0.0450 support level. On the upside, an initial resistance is near the $0.0475 level, followed by $0.0480.
The chart indicates that ADA price is following a solid bullish path above the $0.0450 support level. In the short term, there could be a downside correction, but the $0.0450 and $0.0445 levels are likely to prevent losses. On the upside, buyers are likely to push the price above the $0.0475 and $0.0482 high in the near term.
4 hours MACD – The MACD for ADA/USD is slowly reducing its bullish slope.
4 hours RSI – The RSI for ADA/USD is currently correcting lower towards the 50 level, with a bearish angle.
Key Support Levels – $0.0450 and $0.0445.
Key Resistance Levels – $0.0475 and $0.0480.
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