Cardano (ADA) Rally on Hold: Will It Break Out Again Soon?

As a seasoned researcher with years of experience in the cryptocurrency market, I can confidently say that Cardano’s price action is a familiar dance we often see in this dynamic space. The recent consolidation phase below the $0.6650 zone is not uncommon, especially after a strong rally like the one ADA experienced.


The price of Cardano has entered a period of stabilization just beneath the $0.6650 mark. Currently, ADA is maintaining its gains, potentially preparing for another rise surpassing $0.6500.

  • ADA price started a downside correction after a strong rally toward $0.6600.
  • The price is trading above $0.580 and the 100-hourly simple moving average.
  • There is a key contracting triangle forming with support at $0.5780 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could start another increase if it clears the $0.6060 resistance zone.

Cardano Price Consolidates Gains

Over the last few days, I’ve observed a substantial surge in the value of Cardano (ADA), breaking through the resistance at $0.40. This growth outpaced both Bitcoin and Ethereum. Notably, we also witnessed a move above not one but two significant resistance levels: $0.450 and $0.50.

The price soared past the $0.600 mark, reaching a peak at $0.6620. Currently, it’s holding steady, reflecting consolidation of the recent growth. There was a brief drop below the $0.6120 point, but it quickly recovered. The price momentarily fell under the 23.6% Fibonacci retracement line of the upward trend from the $0.4277 low to the $0.6620 high.

Currently, bullish activity can be observed in the market as the price of Cardano surpasses $0.5500 and the 50% Fibonacci retracement level derived from the upward trend between the $0.4277 swing low and the $0.6620 peak. The Cardano price now stands above $0.580 and is also above the 100-hour moving average.

Additionally, a significant contracting triangle pattern is emerging on the hourly ADA/USD chart, with potential support at around $0.5780. As for potential upward movements, possible resistance levels are found near $0.6060. The first notable resistance lies around $0.6230, followed by a more significant one at approximately $0.6450.

Should the price break through the $0.6450 barrier (a potential resistance level), it may initiate a robust upward trend. In such a scenario, we could anticipate the price climbing towards the $0.6800 area. Further gains could potentially push it even higher, targeting the $0.700 region.

More Losses in ADA?

If the value of Cardano doesn’t manage to surpass the $0.6060 barrier, there’s a possibility it may initiate another drop. The nearest support for potential fall can be found around the $0.5780 mark.

If the price falls below the $0.550 level, it may lead to a potential drop towards $0.5180. However, should the bulls regroup, they could potentially reemerge at the $0.500 level.

Technical Indicators

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

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

Major Support Levels – $0.5780 and $0.5500.

Major Resistance Levels – $0.6060 and $0.6450.

Read More

2024-11-12 08:13