Cardano (ADA) Aims Higher – Bullish Setup Hints at New Leg Up

[Ben Graham]

Cardano price started a fresh increase from the $0.7280 zone. ADA is now rising and might attempt a clear move above the $0.80 zone.

• ADA price started a fresh increase from the $0.7280 support zone.
• The price is trading below $0.80 and the 100-hourly simple moving average.
• There was a break above a key bullish trend line with resistance at $0.7710 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start a fresh increase it clears the $0.80 zone.

Cardano Price Eyes Steady Increase

After a sharp decline, Cardano found support near the $0.7280 zone, like Bitcoin and Ethereum. ADA formed a base above the $0.730 zone and started a decent increase.

There was a clear move above the $0.7450 and $0.7650 resistance levels. There was a break above a key bullish trend line with resistance at $0.7710 on the hourly chart of the ADA/USD pair. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $0.8557 swing high to the $0.7287 low.

Cardano price is now trading below $0.80 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $0.7920 zone and the 50% Fib retracement level of the downward move from the $0.8557 swing high to the $0.7287 low.

The first resistance is near $0.80. The next key resistance might be $0.8080. If there is a close above the $0.8080 resistance, the price could start a strong rally. In the stated case, the price could rise toward the $0.880 region. Any more gains might call for a move toward $0.920 in the near term.

Another Decline In ADA?

If Cardano’s price fails to climb above the $0.80 resistance level, it could start another decline. Immediate support on the downside is near the $0.770 level.

The next major support is near the $0.7520 level. A downside break below the $0.7520 level could open the doors for a test of $0.7280. The next major support is near the $0.70 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.

Major Support Levels – $0.7520 and $0.7280.

Major Resistance Levels – $0.7920 and $0.8000.