Key Takeaways:
- Cardano (ADA) price found a technical support.
- In doing so, the token broke above a key bearish trendline.
- The price could continue to rally in October.
NEW DELHI (CoinChapter.com) — Cardano (ADA) price is over $0.260 as the bulls aim for a larger increase toward the $0.30 level in the coming sessions.
Cardano Price Gains Strength
After a major decline, ADA price found support near the $0.235 zone. The price consolidated for some time above $0.235 and recently started a recovery wave.
The price gained strength for a move above the $0.250 resistance zone. ADA bulls are slowly gaining control like Bitcoin and Ethereum. More importantly, the price cleared a key bearish trend line with resistance near $0.2560 on the daily chart.
The RSI on the same chart is also rising and approaching the 70 level with no major sign of overbought conditions.
ADA price is now trading above the $0.260 resistance and the 50-day simple moving average (blue). The price is testing the 23.6% Fib retracement level of the last main decline from the $0.3787 swing high to the $0.2350 low.
Immediate resistance is near the $0.272 level. The first major resistance is near the $0.285 level. A close above the $0.285 level could send the price toward the $0.300 level.
The next key resistance is near the $0.306 level or the 50% Fib retracement level of the last main decline from the $0.3787 swing high to the $0.2350 low, above which the price could test $0.320. If the bulls push ADA above $0.320, there are chances of a drift toward the main barrier at $0.380.
Downside Correction in ADA Price?
The ADA price could correct lower if no move is above $0.285. Immediate support is near the $0.260 level. The first major support is near the $0.258 level or the 50-day simple moving average (blue), below which the price could drift toward the $0.250 support zone.
If the bulls fail to protect the $0.250 support zone, ADA bears could aim for a test of the $0.235 support region. Any more downsides might send Cardano toward the $0.220 level.
Overall, ADA is gaining strength above the $0.260 level. Cardano could rally further toward the $0.285 level or $0.300 if the bulls remain in action. Conversely, the price could be lower and revisit the $0.250 support zone.
