Cardano (ADA) is gaining pace above the $0.60 resistance. ADA could rally further if there is a clear move above the $0.685 and $0.700 resistance levels.
- ADA price is moving higher above the $0.600 pivot level.
- The price is trading above $0.620 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support near $0.6020 on the 4-hour chart of the ADA/USD pair (data source from Kraken).
- The pair could accelerate higher toward the $0.800 level or even $1.00 in the coming weeks.
Cardano Price Starts Fresh Rally
After forming a base above the $0.500 level, Cardano started a steady increase. There was a break above the $0.550 and $0.600 resistance levels, outperforming Bitcoin and Ethereum.
ADA cleared many hurdles and even spiked above $0.680. A new multi-week high was formed near $0.6802 and the price is now consolidating gains. There was a minor decline below the 23.3% Fib retracement level of the upward move from the $0.5220 swing low to the $0.6802 high.
ADA is now trading above $0.500 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $0.6020 on the 4-hour chart of the ADA/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $0.5220 swing low to the $0.6802 high.
Source: ADAUSD on TradingView.com
On the upside, immediate resistance is near the $0.660 zone. The first resistance is near $0.685. The next key resistance might be $0.700. If there is a close above the $0.700 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.80 region. Any more gains might call for a move toward $1.00.
Are Dips Limited in ADA?
If Cardano’s price fails to climb above the $0.685 resistance level, it could start a downside correction. Immediate support on the downside is near the $0.6200 level.
The next major support is near the $0.600 level and the trend line. A downside break below the $0.600 level could open the doors for a test of $0.5550. The next major support is near the $0.5220 level.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is losing momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Major Support Levels – $0.620, $0.600, and $0.555.
Major Resistance Levels – $0.685, $0.700, and $0.800.