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

Cardano price started a decent increase above the $0.3620 resistance. ADA is now showing positive signs and might rise further toward $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

After forming a base above the $0.3420 level, Cardano started a decent increase. There was a decent move above the $0.3550 and $0.3650 resistance levels like Bitcoin and Ethereum.

The bulls even pushed the price above the $0.380 resistance. A high was formed at $0.3938 and the price is now consolidating gains. It is above the 23.6% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high.

Cardano price is now trading above $0.380 and the 100-hourly simple moving average. There is also a key bullish trend line forming with support at $0.3810 on the hourly chart of the ADA/USD pair.

Cardano (ADA)

On the upside, the price might face resistance near the $0.3900 zone. The first resistance is near $0.3940. The next key resistance might be $0.4200. If there is a close above the $0.4200 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.450 region. Any more gains might call for a move toward $0.500.

Are Dips Supported in ADA?

If Cardano’s price fails to climb above the $0.3900 resistance level, it could start another decline. Immediate support on the downside is near the $0.380 level and the trend line.

The next major support is near the $0.3650 level or the 50% Fib retracement level of the upward move from the $0.3432 swing low to the $0.3938 high. A downside break below the $0.3650 level could open the doors for a test of $0.3550. The next major support is near the $0.3420 level where the bulls might emerge.

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.

Source: https://www.newsbtc.com/analysis/ada/cardano-ada-jumps-0-40/