Cardano (ADA) Jumps 10%: Is a $0.50 Retest on the Horizon?

As a seasoned analyst with over two decades of experience in the financial markets, I see the steady increase in Cardano’s price as a promising sign. The bullish trend line forming at $0.3810 on the hourly chart is a clear indication that the bears might be losing their grip on ADA.


The cost of Cardano began a noteworthy uptrend, surpassing the $0.3620 barrier. Given its current trajectory, ADA could potentially continue climbing, aiming for around $0.420.

    ADA price started a recovery wave from the $0.3420 level.
    The price is trading above $0.380 and the 100-hourly simple moving average.
    There is a key bullish trend line forming with support at $0.3810 on the hourly chart of the ADA/USD pair (data source from Kraken).
    The pair could continue to move up if it remains stable above the $0.3800 support zone.

Cardano Price Starts Steady Increase

Following the establishment of a foundation at the $0.3420 mark, Cardano experienced an upward trend. Notably, it surpassed the resistance levels of $0.3550 and $0.3650 much like Bitcoin and Ethereum did.

The bulls managed to drive the price beyond the $0.380 barrier, reaching a peak at $0.3938. Currently, the price is holding steady as it consolidates its gains. It’s worth noting that it now sits above the 23.6% Fibonacci retracement line, which marks a significant support level following the upward trend from the $0.3432 low to the $0.3938 high.

Currently, the value of Cardano is being exchanged above $0.380 and is aligned with the 100-hour moving average. Additionally, a significant bullish trend line is taking shape on the hourly ADA/USD chart, providing support at $0.3810.

Positively speaking, there’s a possibility that the price may encounter obstacles around the $0.3900 area before increasing. The initial barrier is approximately at $0.3940, and a significant resistance could be found at $0.4200. If the price manages to close above the $0.4200 level, it might initiate a robust surge. In such a scenario, the price may climb toward the $0.450 region, with further gains potentially pushing it towards $0.500.

Are Dips Supported in ADA?

If I can’t push Cardano’s price beyond the $0.3900 barrier, there might be another dip ahead. The nearest line of defense on the flip side lies at around $0.380, with the trendline offering additional support.

The upcoming significant resistance lies around $0.3650, which is also halfway point (50%) of the upward trend from the $0.3432 low to the $0.3938 high. A drop below $0.3650 could lead to a potential test at $0.3550. The next notable support can be found around $0.3420, where buyers might attempt a comeback.

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 now above the 50 level.

Major Support Levels – $0.3800 and $0.3650.

Major Resistance Levels – $0.3900 and $0.4200.

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2024-09-25 08:28