Cardano (ADA) Eyes Momentum for Its Next Big Move
Cardano price started a consolidation phase near the $1.00 area. ADA is holding on to gains and may target fresh gains above $1.050.
- ADA price started a fresh rise from the $0.8800 area.
- The price is trading above $0.950 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $1.020 on the hourly chart of the ADA/USD pair (Data source: Kraken).
- If the $1.050 resistance zone is exceeded, the pair may start rising again.
Cardano price sees another round of gains
Cardano has once again broken the $0.850 resistance level over the past few days. ADA is still in positive territory, e.g. Bitcoin and Ethereum. There was a break above the $0.880 and $0.9250 resistance levels.
The price exceeded the 50% Fib retracement level of the decline from the swing high of $1.150 to low of $0.8696. It even broke above the $1.00 level. However, bears are now active near the $1.050 area. There is also a key bearish trend line forming with resistance at $1.020 on the hourly chart of the ADA/USD pair.
The trendline is close to the 61.8% Fib retracement of the downward move from the swing high of $1.150 to the low of $0.8696. Cardano price is currently trading above $0.950 and the 100 hourly simple moving average.
On the upside, the price may face resistance near the $1.020 area. The first level of resistance is near $1.050. The next key resistance level is likely to be $1.0840. If the price closes above the $1.0840 resistance, the price may start a strong rebound. In the above scenario, the price may rise towards the $1.1500 area. Further gains could lead to a rise in price to $1.20.
Does ADA support Dip?
If Cardano price fails to break above the $1.050 resistance, another decline could begin. Immediate support on the downside lies near $0.9650.
The next major support is near $0.9350. A break below the $0.9350 level could open the door to a test of $0.880. The next major support is near $0.8450, where bulls are likely to emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently above the 50 level.
Major support levels – $0.9650 and $0.9350.
Major resistance levels – $1.0200 and $1.0500.
