Cardano Price Analysis: ADA/USD Primed for More Gains
- ADA price formed a decent support base near the $0.0600 level against the US Dollar (tethered).
- There was a break above a crucial declining channel with resistance at $0.0680 on the hourly chart of the ADA/USD pair (data feed via Bittrex).
- The pair may continue to rise in the short term towards the $0.0750 and $0.0800 levels.
Cardano price is grinding higher against the US Dollar and Bitcoin. ADA/USD could gain traction once it clears the $0.0710 resistance in the near term.
Cardano Price Analysis
This week, we saw a solid decline in cardano price from the $0.0970 swing high against the US Dollar. The ADA/USD pair broke the $0.0800 and $0.0750 support levels. It traded close to the $0.0600 support where buyers emerged. Later, the price started a nice recovery and moved above the $0.0650 level. There was also a break above the 23.6% Fibonacci retracement level of the last significant drop from the $0.0810 high to $0.0604 low.
Additionally, there was a break above a crucial declining channel with resistance at $0.0680 on the hourly chart of the ADA/USD pair. The pair even settled above $0.0700 and the 100 hourly simple moving average. At the moment, the price is trading near a crucial resistance at $0.0710. It coincides with the 50% Fibonacci retracement level of the last significant drop from the $0.0810 high to $0.0604 low. Therefore, a successful break above $0.0707 and $0.0710 could open the doors for more upsides. The next major resistances are aligned near the $0.0750 and $0.0800 levels.
The chart indicates that ADA price is positioned nicely above the $0.0680 support and the 100 hourly SMA. If there is a break above $0.0710, there could be a solid rise towards the $0.0800 zone. On the other hand, below $0.0680, the price may drop back to $0.0610.
Hourly MACD – The MACD for ADA/USD is slightly in the bearish zone.
Hourly RSI – The RSI for ADA/USD is currently above the 50 level.
Major Support Level – $0.0680
Major Resistance Level – $0.0710
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