Cardano price is correcting gains from the $0.4000 zone against the US Dollar, while bitcoin is consolidating. ADA price could dip to $0.3200 before a fresh increase in the near term.
Cardano Price Analysis
Cardano price started a strong rally after it cleared the $0.3000 against the US Dollar. The ADA/USD pair broke the $0.3200 resistance level and settled above the 55 simple moving average (4-hours).
The bulls gained strength, resulting in a push above the $0.3500 resistance zone. The price traded close to the $0.4000 level and a new yearly high was formed near $0.3982. ADA is currently correcting gains and trading below the $0.3800 level.
There was a break below the 23.6% Fib retracement level of the recent surge from the $0.2771 swing low to $0.3982 high. The first major support on the downside is near the $0.3380 level.
The 50% Fib retracement level of the recent surge from the $0.2771 swing low to $0.3982 high is near $0.3380 to provide support. There is also a crucial bullish trend line forming with support near $0.3220 on the 4-hours chart. The trend line support at $0.3220 is close to the 55 simple moving average (4-hours).
Any more losses could lead the price towards the $0.3000 support zone in the near term. On the upside, the $0.3800 and $0.3880 levels are initial hurdles. The first major resistance is at $0.4000. A clear break above the $0.4000 resistance zone could open the doors for a fresh rally. In the stated case, the price is likely to continue higher towards the $0.4250 level.
The chart indicates that ADA price is clearly correcting gains below $0.3800, but it is above the 55 simple moving average (4-hours). Overall, the price is likely to continue higher as long as it is above the $0.3200 support in the near term.
4 hours MACD – The MACD for ADA/USD is losing pace in the bullish zone.
4 hours RSI – The RSI for ADA/USD is currently correcting lower towards the 50 level.
Key Support Levels – $0.3380 and $0.3220.
Key Resistance Levels – $0.3880 and $0.4000.
Source: Read Full Article