Cardano price is attempting a recovery wave above $0.375. ADA could gain bullish momentum if it settles above the $0.3850 resistance zone.
- The ADA price is slowly rising from the $0.360 zone against the US dollar.
- The price is trading above $0.370 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance near $0.369 on the ADA/USD pair’s 4-hour chart (data source from Kraken).
- The pair could start a decent rise if it moves above the $0.3850 resistance zone.
Cardano’s ADA price is trying to recover
This past week, the price of Cardano fell towards the key support zone of $0.354. The bulls managed to stay in action and avert a major downside break below $0.3540.
A low was formed near $0.3536 and the price started a recovery wave. There was a move above the $0.365 and $0.375 resistance levels. In addition, there was a break above a major bearish trendline with resistance near $0.369 on the 4-hour chart of the ADA/USD pair.
The price is up 3% and shows a few positive signs, similar to Bitcoin and Ethereum. The bears are now protecting more gains above the $0.3850 resistance. A high is formed near $0.3850 and the price consolidates gains. ADA price is trading above $0.370 and the 100 simple moving average (4 hours). It could soon test the recent wave’s 23.6% Fib retracement level from the $0.3536 swing low to the $0.3850 high.
Source: ADAUSD at TradingView.com
On the upside, immediate resistance is near the $0.385 zone. The next major resistance forms near the $0.396 zone. If there is an upside break above the $0.385 and $0.396 resistance levels, the price could start a decent rise. In the said case, the price might even cross the $0.420 resistance zone. The next key resistance could be at $0.432, above which $0.45 could test.
New decline in ADA?
If the price of Cardano fails to break above the $0.385 and $0.396 resistance levels, it could trigger another decline. Immediate support on the downside is near the $0.375 level.
The next major support is near the $0.368 level or the 50% Fib retracement level of the recent wave from the $0.3536 swing low to the $0.3850 high. A downside break below the $0.368 level could open the door for another drop towards $0.354. The next major support is near the $0.332 level.
Technical indicators
4am MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Main Support Levels – $0.375, $0.368 and $0.354.
Key resistance levels – $0.385, $0.396 and $0.420.
