Key Takeaways:
- ADA price is approaching a crucial breakout at $0.53.
- It is facing a key bearish trend line with resistance near $0.528 on the daily chart.
- A close above the $0.535 and $0.550 levels could spark a strong upward move.
Cardano’s ADA is attempting a major upside break above $0.535. If the bulls succeed, the price may perhaps rise above the $0.65 and $0.70 resistance levels.
Cardano (ADA) Price Reaches Breakout
In the past few weeks, ADA remained stable above a major support at $0.40 against the US Dollar. The price seems to be forming a strong base above the $0.400 level for a major increase.
Recently, the price started a steady increase, following ethereum’s move above $1,500 and bitcoin’s rise above $23,000. The bulls were able to push the price above the key $0.50 resistance zone and the 50-day simple moving average (blue).
Cardano’s daily price chart | Source: ADAUSD on TradingView.com
The price is now consolidating near the $0.525 and $0.530 resistance levels. There is also a key bearish trend line in place with resistance near $0.528 on the daily chart.
A successful close above the trend line resistance could spark a strong move above $0.550. The next key resistance might be near the $0.600 level. It is close to the 23.6% Fib retracement level of the key drop from the $1.245 high to $0.402 low.
A clear move above the $0.600 resistance could spark a strong increase. The next major resistance is near $0.750. Any more gains might open the doors for a move towards the $0.825 resistance zone. It is close to the 50% Fib retracement level of the key drop from the $1.245 high to $0.402 low.
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 $0.485 level and the 50-day simple moving average (blue).
The main support sits near the $0.400 zone. A close below the $0.400 could trigger another sharp decline. In the stated case, the price might towards the $0.320 support or even $0.300.
Overall, ADA seems to be aiming a major upside break above the $0.535 and $0.550 resistance levels. If the bulls succeed, the price might rise towards the $0.75 level or even $0.84. Conversely, there could be another downward move towards the $0.400 support in the coming days.
