Cardano (ADA) Price Analysis: Rally To $0.05 Seems Imminent
- ADA price is trading with a positive bias above the $0.0350 resistance against the US Dollar.
- The price is gaining traction and it is likely to accelerate above the $0.0385 resistance.
- There is a major bullish trend line forming with support near $0.0365 on the 4-hours chart (data feed via Kraken).
- The price could dip a few points, but it is likely to accelerate above the $0.040 resistance area.
Cardano price is trading nicely in an uptrend against the US Dollar, similar to bitcoin. ADA price could rise further towards the key $0.0500 resistance in the near term.
Cardano Price Analysis
In the past few days, cardano price started a decent increase from the $0.0320 support area against the US Dollar. The ADA/USD pair jumped above the key $0.0350 resistance and the 55 simple moving average (4-hours) to move into a positive zone.
Moreover, there was a close above the $0.0355 level and the price recently traded close to the $0.0385 resistance. A high is formed near $0.0385 and the price is currently consolidating.
It traded below the 23.6% Fibonacci retracement level of the recent wave from the $0.0365 low to $0.0385 high. The main support on the downside starts with the $0.0375 level.
Moreover, the 50% Fibonacci retracement level of the recent wave from the $0.0365 low to $0.0385 high is near the $0.0375 level. There is also a major bullish trend line forming with support near $0.0365 on the 4-hours chart.
If there is a downside break below the trend line, the price could correct lower towards the $0.0350 support area. Any further losses may turn cardano price bearish and it could decline towards the $0.0320 support area.
On the upside, an initial resistance is near the $0.0385 level. A clear break above the $0.0385 level could set the pace for more gains above the $0.0400 and $0.0420 resistance levels.
In the mentioned bullish case, the main target for the bulls may perhaps be near the $0.0500 level in the coming days.
The chart indicates that ADA price is trading with a positive bias above the $0.0350 and $0.0365 support levels. In the short term, there could be a downside correction, but the $0.0365 level is likely to protect losses. On the upside, a clear break above $0.0400 could set the pace for more gains towards $0.0500.
4 hours MACD – The MACD for ADA/USD is slowly gaining pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is currently well above the 60 level.
Key Support Levels – $0.0365 and $0.0350.
Key Resistance Levels – $0.0385 and $0.0400.
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