Cardano (ADA) Price Analysis: Bulls Eyeing Upside Break Above $0.05

  • ADA price is trading nicely in a bullish zone above the $0.0450 pivot level against the US Dollar.
  • It is now approaching a major resistance zone near the $0.0495 and $0.0500 levels.
  • There is a major contracting triangle forming with resistance near $0.0495 on the 4-hours chart (data feed via Kraken).
  • The price could either rally above the $0.0500 resistance or correct towards the $0.0400 support.

Cardano price is currently consolidating below key resistances against the US Dollar, similar to bitcoin. ADA price must climb the $0.0500 resistance level to continue higher in the near term.

Cardano Price Analysis

After a strong rally, cardano price even extended its rise above the $0.0500 resistance zone against the US Dollar. However, the ADA/USD pair failed to continue above the $0.0540 and $0.0550 resistance levels.

As a result, there was a downside correction below the $0.0520 and $0.0500 levels. The price even traded below $0.0480 and the 55 simple moving average (4-hours), but it found a strong support near the $0.0460 level.

A low is formed near the $0.0460 level and the price is back above the 55 simple moving average (4-hours). It is trading above the 50% Fibonacci retracement level of the downward move from the $0.0518 high to $0.0460 low.

On the upside, the price is now approaching a major resistance zone near the $0.0495 and $0.0500 levels. Moreover, there is a major contracting triangle forming with resistance near $0.0495 on the 4-hours chart.

The 61.8% Fibonacci retracement level of the downward move from the $0.0518 high to $0.0460 low is also near $0.0495. If cardano price breaks the triangle resistance, it could continue to rise above the $0.0500 level.

The next key resistance is near the $0.0520 level, above which the price is likely to accelerate higher towards the $0.0550 level in the coming sessions. Any further gains could lead the price towards the $0.0580 and $0.0600 levels.

Conversely, the price might break the triangle support at $0.0475 and revisit the $0.0460 support. The next major support is near $0.0435, below which the bears are likely to aim a test of the $0.0400 support.

Cardano Price

The chart indicates that ADA price is trading in a positive zone above the $0.0475 and $0.0460 levels. Having said that, the price must climb above the $0.0500 resistance to continue higher.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is currently struggling to gain momentum in the bullish zone.

4 hours RSI – The RSI for ADA/USD is just below the 50 level.

Key Support Levels – $0.0475 and $0.0460.

Key Resistance Levels – $0.0500 and $0.0520.

Source: livebitcoinnews.com

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