Cardano (ADA) Consolidates Near $0.5: What Could Trigger Sharp Increase?

Key Takeaways:

  • ADA price is holding the $0.480 support zone.
  • It surpassed a connecting bearish trend line with resistance near $0.504 on the 4-hours chart.
  • A close above the $0.515 and $0.520 levels could spark a strong upward move.
Cardano (ADA) Price Prepares For Next Move
Cardano (ADA) Price Prepares For Next Move | Photo by Quantitatives on Unsplash

Cardano’s ADA is consolidating above the $0.50 and $0.48 support levels. A clear upside break and close above $0.522 might start a steady increase.

Cardano (ADA) Price Prepares For Next Move

This past week, ADA saw a decent upward move above the $0.50 resistance zone against the US Dollar. The price gained pace and was able to clear the $0.52 resistance.

Finally, there was a move towards the $0.550 resistance and the price settled above the 50 simple moving average (4-hours, blue). This week, there was a downside correction from the $0.5565 high.

Cardano’s 4-hours price chart
Cardano’s 4-hours price chart | Source: ADAUSD on TradingView.com

The price declined below the $0.532 and $0.522 support levels. It even spiked below $0.500 before it found support. A low is formed near $0.488 and the price is now consolidating above $0.500. It broke the 23.6% Fib retracement level of the recent decline from the $0.5565 high to $0.4884 low.

Besides, ADA surpassed a connecting bearish trend line with resistance near $0.504 on the 4-hours chart. It is now facing resistance near the $0.508 level and the 50 simple moving average (4-hours, blue).

The first major resistance is near the $0.522 level. It coincides with the 50% Fib retracement level of the recent decline from the $0.5565 high to $0.4884 low. A successful close above $0.522 level might start a steady increase. The next key resistance might be near the $0.550 level.

A clear move above the $0.550 resistance could spark a strong increase. The next major resistance is near $0.620. Any more gains might open the doors for a move towards the $0.725 resistance zone.

If there is no close above the $0.550 resistance, the price might resume its decline. On the downside, ADA price might find support near the $0.500 zone. The main support sits near the $0.480 zone. A close below the $0.480 could trigger another sharp decline. In the stated case, the price might towards the $0.440 support or even $0.400.

Overall, ADA seems to be aiming a steady increase above the $0.522 resistance level. If the bulls succeed, the price might rise towards the $0.55 level or even $0.60. Conversely, there could be another downward move towards the $0.48 support.

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cardano, Cardano (ADA) Consolidates Near $0.5: What Could Trigger Sharp Increase?

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