1 March 2024
Cardano (ADA) is gaining pace above the $0.635 resistance zone. ADA is consolidating gains and might aim for more upsides above the $0.70 resistance.
ADA price is holding gains and facing resistance near the $0.70 zone.
The price is trading above $0.640 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support at $0.6350 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
The pair could attempt a fresh increase if the bulls remain active above the $0.6220 support.
Cardano Price Eyes Another Increase
After forming a base above the $0.5650 level, Cardano started a fresh increase. ADA price was able to climb above the $0.600 and $0.6220 resistance levels to move into a positive zone, like Bitcoin and Ethereum.
The bulls pushed the pair above the $0.650 resistance zone. However, the bears were active near the $0.700 resistance zone. A high was formed near $0.7084 and the price started a downside correction. There was a move below the $0.6750 level.
The price declined below the 23.6% Fib retracement level of the upward wave from the $0.5685 swing low to the $0.7084 high. ADA price is now trading above $0.640 and the 100 simple moving average (4 hours).
There is also a key bullish trend line forming with support at $0.6350 on the 4-hour chart of the ADA/USD pair. The trend line is near the 50% Fib retracement level of the upward wave from the $0.5685 swing low to the $0.7084 high.
Source: ADAUSD on TradingView.com
The bulls might remain active near the $0.6350 support. On the upside, immediate resistance is near the $0.6750 zone. The first resistance is near $0.692. The next key resistance might be $0.700. If there is a close above the $0.700 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.750 region. Any more gains might call for a move toward $0.80.
Downside Correction in ADA?
If Cardano’s price fails to climb above the $0.6750 resistance level, it could continue to move down. Immediate support on the downside is near the $0.6350 level.
The next major support is near the $0.6220 level. A downside break below the $0.6220 level could open the doors for a test of $0.600. The next major support is near the $0.5680 level.
Technical Indicators
4 hours 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.
Major Support Levels – $0.6350, $0.6220, and $0.6000.
Major Resistance Levels – $0.6750, $0.6920, and $0.7000.