Key Takeaways:
- ADA price is facing a strong resistance near $0.600.
- It is following a major bullish trend line with support near $0.535 on the daily chart.
- The bulls need to push the price above $0.58 and $0.60 to start a fresh surge.
Cardano’s ADA is attempting a major upside break above $0.58. If the bulls succeed, the price may perhaps rise above the $0.60 and $0.70 resistance levels.
Cardano (ADA) Price Holds Key Support
In the past few days, ADA saw a decent increase from the $0.400 support zone against the US Dollar. The price formed a base above the $0.45 and $0.47 levels to start a decent increase.
Recently, the crypto market (including ethereum and bitcoin) saw a decent increase. However, upsides were limited above key hurdles. Similarly, ADA faced a strong resistance near the $0.58 zone. Earlier, the price was able to clear the $0.55 resistance zone and the 50-day simple moving average (blue) to move into a positive zone.
Cardano’s daily price chart | Source: ADAUSD on TradingView.com
The price cleared the 50% Fib retracement level of the main decline from the $0.689 swing high to $0.402 low. The bears are protecting more upsides above the $0.58 level.
It seems like the 61.8% Fib retracement level of the main decline from the $0.689 swing high to $0.402 low is acting as a strong resistance. The price is now moving lower and trading below $0.55. It is now approaching the $0.535 support zone.
There is also a major bullish trend line forming with support near $0.535 on the daily chart. A downside break below the trend line support might send the price towards the $0.500 level and the 50-day simple moving average (blue).
A close below the $0.500 support could trigger another sharp decline. In the stated case, the price might towards the $0.420 support or even $0.400.
On the upside, the price is facing a major resistance near the $0.58 level. A successful close above the $0.580 resistance could spark a strong move above $0.600. The next key resistance might be near the $0.675 level. Any more gains might open the doors for a move towards the $0.75 resistance zone.
Overall, ADA seems to be approaching a major support at $0.535. If the bulls protect losses, the price might rise towards the $0.60 level or even $0.675. Conversely, there could be another downward move towards the $0.500 support.
