Cardano (ADA) is gaining pace above the USD 0.40 resistance. ADA could recover if there is a clear move above the USD 0.432 and USD 0.450 resistance levels.
- The ADA price is moving higher above the $0.400 pivot level.
- The price is trading above USD 0.415 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $0.410 on the 4-hour chart of the ADA/USD pair (Kraken data source).
- The pair could accelerate higher towards the $0.500 level or even $0.550.
Cardano price starts steady increase
After forming a base above the USD 0.3750 level, Cardano started a steady rise. There was a break above the $0.388 and $0.400 resistance levels, but ADA, like Bitcoin and Ethereum, lagged behind the momentum.
The price even climbed above the USD 0.420 resistance. It reached a high near $0.4293 and the price is now consolidating gains. It is trading above the 23.3% Fib retracement level of the upward move from the $0.3715 swing low to the $0.4293 high.
ADA is now trading above $0.415 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support near $0.410 on the 4-hour chart of the ADA/USD pair.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.4250 zone. The first resistance is near $0.432. The next major resistance could be at USD 0.450. If there is a close above the USD 0.450 resistance, the price could start a strong rally. In the mentioned case, the price could rise towards the $0.50 region. Further gains could require a move towards $0.550.
Are dips supported in ADA?
If Cardano price fails to rise above the USD 0.432 resistance level, a downside correction could occur. The immediate downside support is near the $0.4150 level.
The next major support is near the $0.410 level and trendline. A downside break below the USD 0.410 level could open the doors for a test of USD 0.388. The next major support is near the USD 0.372 level.
Technical indicators
4-hour MACD – The MACD for ADA/USD is gaining strength in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major support levels – $0.415, $0.410 and $0.388.
Major resistance levels – $0.432, $0.450 and $0.500.
