Cardano (ADA) Price Analysis: Fresh Breakout Likely Above $0.08
- ADA price rallied towards the $0.0880 level before correcting lower against the US Dollar.
- The price declined below the $0.0800 level, but it found support near the $0.0720 level.
- There is a major contracting triangle forming with resistance near $0.0800 on the 4-hours chart (data feed via Kraken).
- The price could start another increase if it clears the $0.0800 and $0.0820 resistance levels.
Cardano price is currently consolidating after the recent correction against the US Dollar and bitcoin. ADA price could continue higher if it clears the $0.0800 resistance zone.
Cardano Price Analysis
In the past few days, cardano price started a strong increase above the $0.0700 resistance against the US Dollar. The ADA/USD pair extended its rise above the $0.0720 resistance and the 55 simple moving average (4-hours).
The price even broke the $0.0800 resistance and tested the $0.0870 zone. A high is formed near $0.0872 and recently there was a downside correction. There was a break below the $0.0820 and $0.0800 levels.
The price broke the 50% Fibonacci retracement level of the upward move from the $0.0625 low to $0.0872 high. However, the decline found support near the $0.0720 level.
It seems like the 61.8% Fibonacci retracement level of the upward move from the $0.0625 low to $0.0872 high is acting as a strong support. There is also a major contracting triangle forming with resistance near $0.0800 on the 4-hours chart.
If there is an upside break above the $0.0800 and $0.0820 resistance levels, there are chances of a fresh increase. The next major resistance is near the $0.0872 high, above which the price might rise towards the $0.0920 and $0.0950 resistance levels.
Conversely, there is a risk of a downside break below the $0.0720 support zone. In the mentioned case, the price is likely to decline below the $0.0700 level. The next major support is near the $0.0670 level or the 55 simple moving average (4-hours).
The chart indicates that ADA price is trading in a positive zone above the $0.0720 and $0.0700 levels. Having said that, the price must break the $0.0800 and $0.0820 resistance levels to start a fresh increase. If not, there is a risk of another bearish wave below the $0.0680 and $0.0670 levels.
4 hours MACD – The MACD for ADA/USD is slowly gaining momentum in the bullish zone.
4 hours RSI – The RSI for ADA/USD is still well above the 50 level.
Key Support Levels – $0.0720 and $0.0670.
Key Resistance Levels – $0.0800 and $0.0820.