Key Highlights
- ADA price is holding the $0.3400 support very nicely and is currently moving higher against the US Dollar (tethered).
- There was a break above a connecting bearish trend line with resistance at $0.3625 on the hourly chart of ADA/USD (data feed via Bittrex).
- The pair is likely to extend gains, but it won’t be easy for buyers to break the $0.4000 resistance.
Cardano price is slowly rising against the US Dollar and Bitcoin. ADA/USD must clear the $0.4000 resistance to gain further upside momentum.
Cardano Price Support
There was a slow and steady upside move formed from the $0.3200 low in ADA price against the US Dollar. The price traded above $0.4300 before correcting lower. The recent low was formed at $0.3395 from where the price started a fresh upside wave. A connecting bullish trend line with support at $0.3500 on the hourly chart of ADA/USD acted as a support.
The pair moved above $0.3600 and the 23.6% Fib retracement level of the last decline from the $0.4386 high to $0.3395 low. There was also a break above a connecting bearish trend line with resistance at $0.3625 on the same chart. However, the upside move was limited by the $0.3650-0.3700 area. Moreover, there was no complete test of the 38.2% Fib retracement level of the last decline from the $0.4386 high to $0.3395 low. It seems like the price is facing important resistance levels on the upside at $0.3800 and $0.4000. The $0.4000 level is also the 61.8% Fib retracement level of the last decline from the $0.4386 high to $0.3395 low.
Therefore, a break and close above $0.4000 is needed for buyers to push the price further higher. On the downside, the $0.3400-0.3500 support zone is a decent buy area.
Hourly MACD – The MACD for ADA/USD is slowly moving higher in the bullish zone.
Hourly RSI – The RSI for ADA/USD is just around the 50 level.
Major Support Level – $0.3400
Major Resistance Level – $0.4000
Charts courtesy – Cryptowat, Bittrex
