Key Takeaways:
- ADA price started a fresh rally above the $0.40 resistance.
- It is following a major bullish trend line with support at $0.40 on the daily chart.
- The current price action suggests a bullish case for a move toward $0.50.
ADA Price Prediction | Photo by Traxer on Unsplash
Cardano’s ADA formed a base and climbed above $0.40. The price is now rising and might rally further toward the $0.50 resistance.
Cardano Price Starts Fresh Rally
After forming a base above $0.360, ADA price started a strong increase against the US Dollar. The recent surge in Ethereum and Bitcoin lead the crypto market higher.
Cardano price also accelerated higher once it broke the 76.4% Fib retracement level of the main drop from the $0.4215 swing high to the $0.2978 low. The price is now trading well above the $0.40 resistance and the 50-day simple moving average (blue).
Cardano’s daily price chart | Source: ADAUSD on TradingView.com
ADA price is up over 10% in a day and the current price action suggests the rally is not over. On the upside, the price is facing a strong resistance near the 1.236 Fib extension level of the main drop from the $0.4215 swing high to the $0.2978 low at $0.450.
The main target for the bulls in the current wave could be $0.50. It coincides with the 1.618 Fib extension level of the main drop from the $0.4215 swing high to the $0.2978 low. Any more gains might pump the price toward the $0.55 level.
Dips Support in ADA?
If there is no upside break above the $0.45 resistance zone, ADA price might correct gains. Initial support on the downside is near the $0.42 level.
The first major support is now forming near the $0.40 level. Besides, there is a major bullish trend line forming with support at $0.40 on the daily chart. A downside break below the $0.40 support zone might send the price toward the 50-day simple moving average (blue) at $0.36. Any more losses could initiate a move toward the $0.300 support.
Overall, ADA seems to be eyeing more gains above the $0.45 resistance. If the bulls push the price above this hurdle, there could be a strong move toward $0.50. Conversely, there could be a downside correction toward the $0.40 support.
