Key Takeaways:
- ADA price started a recovery wave above the $0.28 resistance.
- A key declining channel is forming with resistance near $0.325 on the daily chart.
- There could be a strong increase if there is a clear move above the $0.330 resistance.
Cardano’s ADA formed a base and recovered from $0.240. However, the price is rising and facing a major resistance, near $0.33.
Cardano (ADA) Price Attempts Upside Break
After a steady decline, ADA found support near the $0.2400 zone against the US Dollar. However, the price remained well-bid above the $0.240 and $0.260 support levels.
A base was formed, and the price steadily increased above the $0.280 level. The bulls were able to push the price above the $0.300 level and the 50-day simple moving average (blue). The price climbed above the 23.6% Fib retracement level of the key decline from the $0.4380 swing high to the $0.240 low.
In the past few sessions, there were mostly positive moves in Cardano, similar to bitcoin and ethereum. The price shows positive signs above the $0.312 and the 50-day simple moving average (blue).
On the upside, the price faces strong resistance near the $0.330 level. A key declining channel is forming with resistance near $0.325 on the daily chart. The channel resistance is close to the 50% Fib retracement level of the key decline from the $0.4380 swing high to the $0.240 low.
The next key resistance might be near the $0.40 level. A successful close above the $0.40 resistance could start another decent increase toward $0.50. Any more gains might open the doors for a move toward the $0.55 resistance zone.
No Upside Break?
If there is no upside break above the channel resistance zone, the ADA price might correct gains from $0.330. However, initial support on the downside is near the $0.305 level.
The main support is near the $0.285 zone, the 50-day simple moving average (blue). A downside break below the $0.285 support zone and the 50-day simple moving average (blue) might send the price toward the $0.25 level. Any more losses could initiate a move toward the $0.240 swing low.
ADA seems to be approaching a major hurdle near $0.320 and $0.330. If the bulls push the price above this hurdle, there could be a strong move toward $0.40. Conversely, there could be a downward move toward the $0.285 support.
