Cardano Price Analysis – Bullish Pattern Suggests High Increase
During this last week, there was an insignificant downside correction in Cardano price below the $0.1450 support against the U.S. Dollar. The ADA/USD pair even went below the $0.1320 support level and the 55 simple moving average (4-hours).
A swing low is formed close to $0.1233, and the price is now recovering. It is back above the $0.1320 pivot range and the 55 simple moving average on the 4-hours chart. There was a break above the 50 percent Fibonacci retracement level of the dropping move from the $0.1526 swing high to $0.1233 swing low.
Cardano Trades in a Positive Zone Now
It appears like there is a main rising channel forming with support close to $0.1380 on the 4-hours chart. Earlier support on the downside is near the $0.1400 level and the 55 SMA. The first significant support is close to the channel trends line at $0.1380; if there is a break below the channel support, the price could keep moving downwards to the $0.1320 support. Any more losses could push the price into bearish territory, and it might drop towards $0.1220.
On the upside, the channel resistance is close to the $0.1450 level. It is near the 75.4 percent Fibonacci retracement level of the downward move from the $0.1526 swing high to $0.1233 swing low.
A definite break above the channel resistance line could come with possibilities for more upsides above $0.1500; the next significant resistance is close to the $0.1550 level, above which the price might go to the $0.1650 line.
This chart on TradingView shows that ADA price is definitely trading in a positive region above the $0.1320 support. Overall, the price is most probable to accelerate higher if there is a definite break above the $0.1450 resistance area.
4 hours MACD – The MACD for ADA/USD is gradually getting pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is still above the 50 line.
Key Support Levels – $0.1400 and $0.1350.
Key Resistance Levels – $0.1450 and $0.1500.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.