Cardano (ADA) Price Analysis: Bullish Pattern Suggests Sharp Increase
Cardano price is slowly gaining pace above the $0.1400 level against the US Dollar, similar to bitcoin. ADA price is likely to accelerate higher above the $0.1450 and $0.1500 resistance levels.
Cardano Price Analysis
This past week, there was a minor downside correction in cardano price below the $0.1450 support against the US Dollar. The ADA/USD pair even spiked below the $0.1320 support level and the 55 simple moving average (4-hours).
A swing low is formed near $0.1233 and the price is currently recovering. It is back above the $0.1320 pivot level and the 55 simple moving average (4-hours). There was a break above the 50% Fibonacci retracement level of the downward move from the $0.1526 swing high to $0.1233 swing low.
It seems like there is a key rising channel forming with support near $0.1380 on the 4-hours chart. An initial support on the downside is near the $0.1400 level and the 55 SMA.
The first major support is near the channel trend line at $0.1380. If there is a break below the channel support, the price could continue to move down towards the $0.1320 support. Any further losses may perhaps push the price into a bearish zone and it might dive towards $0.1220.
On the upside, the channel resistance is near the $0.1450 level. It is close to the 76.4% Fibonacci retracement level of the downward move from the $0.1526 swing high to $0.1233 swing low.
A clear break above the channel resistance level could open the doors for more upsides above $0.1500. The next major resistance is near the $0.1550 level, above which the price might test the $0.1650 level.
Cardano (ADA) Price
The chart indicates that ADA price is clearly trading in a positive zone above the $0.1320 support. Overall, the price is likely to accelerate higher if there is a clear break above the $0.1450 resistance zone.
4 hours MACD – The MACD for ADA/USD is slowly gaining pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is still well above the 50 level.
Key Support Levels – $0.1400 and $0.1350.
Key Resistance Levels – $0.1450 and $0.1500.
Source: Read Full Article