Cardano rallied more than 12% and outpaced bitcoin’s 5% rise. ADA price is now trading well above $0.0500 and it could continue to rise towards the $0.0600 resistance area.
ADA price started a strong rise after it broke a major resistance near $0.0465 against the US dollar.
The price rallied above the $0.0500 and $0.0520 resistance levels.
There was a break above a key contracting triangle with resistance near $0.0440 on the 4-hours chart of the ADA/USD pair (data source from Kraken).
The pair is likely to rise further towards the $0.0600 and $0.0620 resistance levels in the near term.
Cardano Bulls In Control
This past week, cardano formed a strong support base near the $0.0410 level. Later, ADA started a slow and steady rise above the $0.0420 resistance area.
Finally, it broke the $0.0440 and $0.0450 resistance levels to start a strong upward move. Moreover, there was a break above a key contracting triangle with resistance near $0.0440 on the 4-hours chart of the ADA/USD pair.
It opened the doors for more gains above the $0.0500 and $0.0520 resistance levels. The price traded to a new yearly high at $0.0545 and it is currently showing a lot of positive signs.
On the upside, an initial hurdle is near the $0.0550 level. A successful break above the $0.0550 level could propel cardano price towards the main $0.0600 resistance level. Any further gains could lead the price towards the $0.0620 level.
Dips In ADA Remain Supported
If ADA starts a downside correction, the $0.0520 area might act as a decent support. It coincides with the 23.6% Fib retracement level of the recent rise from the $0.0440 low to $0.0545 high.
The first major support for the bulls is near the $0.0500 level. In addition, the 50% Fib retracement level of the recent rise from the $0.0440 low to $0.0545 high is also positioned just below the $0.0500 level.
If cardano fails to stay above the $0.0500 support area, the bulls might lose control. In the mentioned bearish case, the price is likely to start a larger downside correction towards the $0.0465 support (the recent breakout zone) or it could test the 100 simple moving average (4-hours) in the coming days.
4-hours MACD – The MACD for ADA/USD is gaining strong momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently well above the 70 level and it is in the overbought zone.
Major Support Levels – $0.0520, $0.0500 and $0.0465.
Major Resistance Levels – $0.0550, $0.0600 and $0.0620. The post appeared first on NewsBTC.