Cardano (ADA) Rallies 20%, Why It Could Soon Break $1
Cardano’s price started a strong surge above $0.7000 and $0.8000. ADA is consolidating gains and it is likely to continue higher above the $1.00 resistance.
- ADA started a strong surge above the $0.6500 and $0.7000 resistance levels against the US dollar.
- The price is now trading well above $0.8500 and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.8250 on the 4-hours chart of the ADA/USD pair (data source from Bitfinex).
- The pair is likely to continue higher above $0.9500 and $0.9800 in the coming sessions.
Cardano (ADA) is Surging
In the past few days, cardano’s price started a strong rally after it settled above $0.5000. ADA price rallied significantly and it broke many important hurdles near $0.6500 and $0.7200, outperforming bitcoin.
The bulls gained strength above $0.8000 and it traded to a new yearly high at $0.9518. It is now trading well above $0.8500 and the 100 simple moving average (4-hours). It also tested the 23.6% Fib retracement level of the recent rally from the $0.7485 low to $0.9518 high.
The next major support is near the $0.8500 level. It is close to the 50% Fib retracement level of the recent rally from the $0.7485 low to $0.9518 high.
Source: ADAUSD on TradingView.com
There is also a key bullish trend line forming with support near $0.8250 on the 4-hours chart of the ADA/USD pair. On the upside, the $0.9500 level is a major hurdle. The main resistance is now near the $1.00 level.
A successful break above the $0.9500 and $1.00 resistance levels may possibly lead the price further higher. In the stated case, it could even test $1.20.
If cardano’s price fails to clear the $0.9500 and $0.1000 resistance levels, it could correct lower. An initial support is near the $0.8500 level.
The main support is now forming near the $0.8200 level and the trend line zone. A clear break below the trend line support may possibly push the price lower towards the $0.7200 support level in the coming session. Any more losses could encourage the bears for a test of the $0.6500 level.
4-hours MACD – The MACD for ADA/USD is clearly gaining strong momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for ADA/USD is currently in the overbought zone.
Major Support Levels – $0.9000, $0.8500 and $0.8250.
Major Resistance Levels – $0.2750, $0.2800 and $0.3000.