Altcoin
Can Cardano Catch Up with Other Altcoins?
Cardano (ADA) is struggling to initiate a fresh rally above the $0.500 resistance zone. ADA needs to stay above the $0.480 support to start a decent upward move.
- ADA price is struggling to gain bullish momentum above the $0.50 zone.
- The price is trading above $0.480 and the 100 hourly simple moving average.
- There is a key uptrend line forming with support near $0.480 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could gain bullish momentum if there is a close above $0.500.
Cardano price remains supported
In recent days, Cardano started a recovery wave from the $0.4620 zone, but fell behind Bitcoin AND Ethereum. ADA price broke through the $0.4750 and $0.480 levels to move into a short-term bullish zone.
The price even rose above $0.50 but failed to continue rising. A high was formed at $0.510 and a downward correction has recently occurred. The price fell below the $0.4980 support. It fell below the 23.6% Fib retracement level of the upward move from the $0.4614 low to the $0.510 low.
Cardano is now trading above $0.480 and the 100 hourly simple moving average. There is also a key uptrend line forming with support near $0.480 on the hourly chart of the ADA/USD pair. The trend line is near the 61.8% Fib retracement level of the upward move from the $0.4614 low to the $0.510 low.
On the upside, immediate resistance is near the $0.4980 zone. The first resistance is near $0.510. The next key resistance could be $0.5250. If a close occurs above the $0.5250 resistance, the price could begin a strong rally. In the given case, the price could rise towards the $0.5450 region. Any further gains may require a move towards $0.5650.
Another decline in the ADA?
If Cardano price fails to break above the $0.4980 resistance level, it may begin another decline. Immediate support on the downside is near the $0.450 level.
The next major support is near the $0.480 level. A break below the $0.480 level could open the door for a test of $0.4620. The next major support is near the $0.450 level.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.
Major support levels: $0.4850, $0.4800 and $0.4620.
Major resistance levels: $0.4980, $0.5100 and $0.5250.