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.
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.
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.