As a seasoned crypto investor with several years of experience, I have witnessed many bull and bear markets in the cryptocurrency space. The recent price action of Cardano (ADA) has caught my attention, as it has shown remarkable strength by breaking above key resistance levels.
The price of Cardano has risen above the $0.4350 resistance, and currently, it’s holding its ground. However, there’s a possibility that ADA may take a break from its upward trend and correct downward towards the $0.4250 support level.
- ADA price climbed higher and tested the $0.4565 zone.
The price is trading above $0.4320 and the 100-hourly simple moving average.
There was a break below a key bullish trend line with support at $0.4400 on the hourly chart of the ADA/USD pair (data source from Kraken).
The pair could correct lower and test the $0.4250 support zone.
Cardano Price Shows Signs of Short-Term Weakness
Recently, Cardano has been making steady progress towards surpassing the $0.40 resistance mark. The cryptocurrency’s price broke past key resistance levels at $0.42 and $0.425, following a similar trend observed in Bitcoin and Ethereum.
The price surpassed the $0.450 resistance level and reached as high as $0.4650. A new peak was established at $0.4680, but the market is currently correcting its advance. Previously significant support at $0.4450 and $0.4400 were breached. Moreover, there was a downward break of a significant bullish trend line with a support at $0.4400 on the hourly chart for ADA/USD pair.
At a price of $0.4359, a low point was reached, but the price of ADA has been confined to a particular range. Currently, the price is above $0.4320 and the 100-hour moving average. Should there be further upward momentum, potential resistance may emerge around the $0.4465 region and the 50% Fibonacci retracement level of the decline from the $0.4568 peak to the $0.4359 bottom.
As a researcher studying market trends, I’ve identified the initial resistance level at around $0.450. The next significant resistance point may be located at $0.4650. Should the price manage to breach this resistance, a powerful upward trend could ensue, potentially pushing the price toward the $0.4880 area. Further gains might then necessitate a move towards $0.500.
Downside Correction in ADA?
If the price of Cardano doesn’t manage to surpass the $0.4465 resistance point, there’s a risk it may trigger a decline instead. In such a case, a support level can be found around $0.4360.
If we move forward, the next significant level of support can be found around $0.4250. A drop below this mark might lead us to retest the price at $0.4050. The subsequent important support lies close to $0.400.
Technical Indicators
Hourly MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major Support Levels – $0.4360 and $0.4250.
Major Resistance Levels – $0.4465 and $0.4650.
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2024-07-18 08:10