Key Takeaways:
- ADA price started a fresh increase above the $0.30 resistance.
- It broke a major declining channel with resistance near $0.338 on the daily chart.
- The bulls are now aiming a push towards the $0.480 and $0.500 resistance levels.
Cardano’s ADA formed a base and climbed above $0.30. The price is now rising and facing major resistance, near $0.392.
Cardano (ADA) Price Gains Bullish Momentum
After forming a base above $0.240, ADA price started a steady increase against the US Dollar. The price remained well bid above the $0.280 and $0.285 levels.
As a result, there was a clear upside break above the $0.300 resistance. The bulls were able to pump the price above the $0.32 resistance and the 50-day simple moving average (blue). Besides, the price cleared the 50% Fib retracement level of the main drop from the $0.4380 swing high to $0.2401 low.
ADA price also broke a major declining channel with resistance near $0.338 on the daily chart. It opened the doors for more gains above the $0.35 level, similar to bitcoin and ethereum. The price shows positive signs above the $0.355 and the 50-day simple moving average (blue).
On the upside, the cardano price is facing a strong resistance near the $0.392 level. It is close to the 76.4% Fib retracement level of the main drop from the $0.4380 swing high to the $0.2401 low.
The next key resistance might be near the $0.40 level. A successful close above the $0.40 resistance could pump the price further higher towards $0.438. Any more gains might open the doors for a move towards the $0.50 resistance zone.
Dips Limited in ADA?
If there is no upside break above the $0.40 resistance zone, ada price might correct gains from $0.392. An initial support on the downside is near the $0.362 level.
The first major support is now forming near the $0.338 level. A downside break below the $0.338 support zone might send the price toward the main support at $0.30 or the 50-day simple moving average (blue). Any more losses could initiate a move toward the $0.260 support.
ADA seems to be approaching a major breakout above the $0.40 resistance. If the bulls push the price above this hurdle, there could be a strong move towards $0.50. Conversely, there could be a downward move in cardano towards the $0.338 support.
