Key Takeaways:
- ADA price is struggling to rise above the $0.350 resistance.
- A key contracting triangle is forming with resistance at $0.3420 on the daily chart.
- The price could slide again if it stays below $0.350 for a few more days.
New Delhi(Coinchapter.com): Cardano (ADA) is eyeing the next key move. The price might attempt a fresh increase if it clears $0.350 and $0.3670 in the near term.
Cardano Price Faces Uphill Task
After a major decline, ADA price found support near the $0.2780 zone. A low was formed at $0.2770 and the price recently started a recovery wave, like Ethereum and Bitcoin. The price climbed above the $0.2950 and $0.300 resistance levels.
The bulls pushed Cardano above the 23.6% Fib retracement level of the downward move from the $0.4568 swing high to the $0.2770 low. However, the bears seem to be active near the $0.350 zone and the price is still well below the 50-day simple moving average (blue).
ADA price is now consolidating near the $0.3350 level. More importantly, there is a key contracting triangle forming with resistance at $0.3420 on the daily chart.
To start a fresh increase, Cardano must clear the triangle resistance and $0.350. The first hurdle above the triangle zone sits at $0.3670. It is close to the 50% Fib retracement level of the downward move from the $0.4568 swing high to the $0.2770 low.
The main resistance is now forming near the $0.3882 level and the 50-day simple moving average (blue). A close above the $0.3882 zone could open the doors for more upsides. The next key resistance could be near the $0.420 zone. Any more gains might send ADA toward the $0.450 level.
Fundamentally, Cardano continues to grow and deliver. Recently, the Foundation shared some of the key advantages of using the Cardano blockchain, including peer-reviewed research, scaling optimization, deterministic execution model, competitive capabilities, and advanced storage efficiency.
Downside Break In ADA?
If there is no move above $0.350, ADA price could start another decline. Immediate support is near the $0.320 level and the triangle’s trend line. The first major support is near the $0.3190 level.
The next major support is near the $0.300 pivot level, below which there is a risk of a drop toward the $0.2770 level. Any more losses might increase selling pressure and send Cardano toward $0.250.
Overall, ADA is consolidating and eyeing the next key move. If the bulls gain strength, Cardano could start a steady increase above the $0.350 and $0.3670 resistance levels. Conversely, the price could dive and retest $0.300.
