Cardano (ADA) Uptrend Faces Hurdles: Will Bulls Break the Barrier?

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As a seasoned researcher with years of experience analyzing cryptocurrency markets, I have witnessed the rollercoaster ride that is Cardano (ADA). The latest development suggests a potential upward break for ADA, having formed a base above $1.00 and climbing past key resistance levels like $1.050 and $1.120. However, the price correction from the $1.1780 zone indicates a consolidation phase, with hurdles at $1.180 and $1.200 in sight.

The cost of Cardano initially began a decline from around $1.1780, but now it’s pausing and encountering resistance at approximately $1.180 and $1.200.

  • ADA price started a decent increase from the $0.910 support zone.
  • The price is trading above $1.050 and the 100-hourly simple moving average.
  • There is a major bearish trend line forming with resistance at $1.160 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it clears the $1.180 resistance zone.

Cardano Price Eyes Upside Break

Following the establishment of a new platform surpassing the $1.00 mark, Cardano commenced an upward trend similar to both Bitcoin and Ethereum. Notably, ADA managed to overcome the resistance at $1.050 and $1.120 levels.

As a crypto investor, I’ve noticed some bear activity beneath the $1.20 mark. We reached a peak at $1.1781, and now we’re consolidating our gains. There was a slight drop below the $1.120 point. The price also fell below the 23.6% Fibonacci retracement level of our upward trend from the $0.910 swing low to the $1.1781 high.

Currently, the cost of Cardano is being traded above $1.050 and coinciding with its 100-hour moving average. As it moves upward, potential obstacles may appear around the $1.150 region. Additionally, a significant downward trend line is emerging on the hourly chart for ADA/USD, with resistance at approximately $1.160.

Initially, the price may face resistance around $1.180. If it overcomes this, another potential resistance level lies at $1.20. Should the price manage to close above $1.20, it could initiate a robust upward trend. In such a scenario, the price might climb towards the $1.2280 area. Further gains may then prompt a further rise towards $1.250.

Another Decline in ADA?

Should the value of Cardano not manage to surpass the $1.180 barrier, there’s a possibility it might initiate another drop instead. In case of such a decline, potential support could be found around the $1.10750 mark.

Moving forward, significant resistance can be found around the $1.050 mark or at the 50% Fibonacci retracement point of the upward climb from the $0.910 trough to the $1.1781 peak. A drop below $1.050 might lead us towards a potential test of $1.00. Should the price fall, potential support could appear at $0.920, a level where buyers may re-emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $1.070 and $1.050.

Major Resistance Levels – $1.160 and $1.180.

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2024-12-13 08:10