Charted: Cardano (ADA) Remains Strong Above 100 SMA, Why It Could Rally Again

Charted: Cardano (ADA) Remains Strong Above 100 SMA, Why It Could Rally Again

Cardano’s price traded to a new multi-month high at $1.23 before correcting lower. ADA declined sharply below $1.00, but the bulls were active above $0.8500.

  • ADA surged towards the $1.25 level before correcting lower against the US dollar.
  • The price is still trading well above $0.9500 and the 100 simple moving average (4-hours).
  • There is a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
  • The pair could face hurdles near $1.06, but the overall trend seems to be positive.

Cardano (ADA) is Showing Bullish Signs

In the past few days, cardano’s price started a steady increase above the $0.9500 resistance. ADA price even cleared the $1.00 resistance and settled well above the 100 simple moving average (4-hours).

Finally, there was a break above the $1.10 level and a new multi-month high was formed near $1.23. Recently, there was a sharp downside correction below the $1.10 and $1.00 levels. The price even dived below the $0.9500 support level.

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The price even tested the $0.8500 support level, but there was no close below the 100 simple moving average (4-hours). A low is formed near $0.8057 and the price is currently recovering. It climbed above the 50% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low.

Charted: Cardano (ADA) Remains Strong Above 100 SMA, Why It Could Rally Again

There is also a crucial bullish trend line forming with support near $0.8500 on the 4-hours chart of the ADA/USD pair. The price is now showing a lot of positive signs above the $0.9500 level.

On the upside, there is a strong resistance forming near the $1.06 level. It is close to the 76.4% Fib retracement level of the recent decline from the $1.23 high to $0.8057 low. A clear break above the $1.06 level could open the doors for a sharp increase towards the $1.20 level.

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Dips Supported?

If cardano’s price fails to clear the $1.05 and $1.06 resistance levels, it could again correct lower. An initial support is near the $0.9500 level.

The main support is now forming near the $0.9000 level and the 100 simple moving average (4-hours). Any more losses below $0.9000 might risk of a break below $0.8500.

Technical Indicators

4-hours MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently above the 50 level.

Major Support Levels – $0.9800, $0.9500 and $0.9000.

Major Resistance Levels – $1.05, $1.06 and $1.20.

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