Key Takeaways:
- ADA price is up over 15% and trading above $0.325.
- It broke a couple of bearish patterns at $0.245 and $0.250 on the daily chart.
- The price could continue to rally toward the $0.378 and $0.412 levels.
NEW DELHI (CoinChapter.com) — Cardano (ADA) is gaining pace above $0.325. The bulls seem to be in action and they might aim for another 20% rally in the coming weeks.
ADA Price Breaks Key Hurdles
After testing the $0.235 support on many occasions, ADA price started a decent recovery wave. The price was able to clear a couple of bearish patterns at $0.245 and $0.250 on the daily chart.
It sparked a decent upward move above the $0.285 resistance zone and the 50-day simple moving average (blue). The recent gains in Solana, XRP, and AVAX also lifted the market sentiment of ADA. It gained over 15% in a few days and surpassed the $0.30 pivot level.
ADA price also broke the 61.8% Fib retracement level of the last crucial drop from the $0.3788 swing high to the $0.2350 low. It is now showing a lot of positive signs above $0.325.
Cardano Summit 2023 Impact
Recently, Cardano concluded its Summit 2023 and celebrated its success. There were many positives to take from the Summit, which are currently impacting ADA’s price movements.
The current price action suggests high chances of more upsides since it is trading just above the 76.4% Fib retracement level of the last crucial drop from the $0.3788 swing high to the $0.2350 low. Immediate resistance is near $0.362.
The first key resistance could be near the $0.3787 high. If Cardano Bulls remain in action, they could aim a decent 20% pump toward the $0.412 level. It is near the 1.236 Fib extension level of the last crucial drop from the $0.3788 swing high to the $0.2350 low. Any more gains might send ADA toward the $0.435 level.
Downside Correction in ADA Price?
If there is no move above $0.362, the ADA price could correct lower. Immediate support is near the $0.325 level. The first major support is near a connecting bullish trend line on the same chart at $0.312.
The next major support is near the $0.300 handle, below which there is a risk of a drop toward the 50-day simple moving average (blue) at $0.268. Any more losses might increase selling pressure and send Cardano toward $0.235.
Overall, ADA is gaining strength above the $0.325 level. If the bulls remain in action, Cardano could rally further toward the $0.3787 level or $0.412. Conversely, the price could be lower and revisit the $0.312 support zone.
