Key Takeaways:
- ADA price is slowly moving higher from the $0.435 support zone.
- It broke a major contracting triangle with resistance near $0.450 on the 4-hours chart.
- The current indicators suggest a strong upward move towards the $0.50 resistance.
Cardano’s ADA is slowly moving in a positive zone above $0.450. It could start a fresh surge if there is a clear move above the $0.480 resistance.
Cardano (ADA) Price Signals Recovery
This past month, ADA made a couple of attempts to gain strength above the $0.50 resistance against the US Dollar. However, the bulls failed to push the price further higher above $0.525. The last swing high was formed near $0.525 before there was a fresh decline.
The price traded below the $0.450 level and formed a low at $0.435. A base was formed above $0.435 and the price started a slow recovery wave. There was a clear move above the $0.450 resistance zone and the 50 simple moving average (4-hours, blue).
Cardano’s 4-hours price chart | Source: ADAUSD on TradingView.com
The price surpassed the 23.6% Fib retracement level of the key decline from the $0.525 high to $0.435 low. Besides, there was a clear move above a major contracting triangle with resistance near $0.450 on the 4-hours chart.
The price is now showing positive signs above the $0.462 level and the 50 simple moving average (4-hours, blue). An immediate resistance is near the $0.480 level.
The 50% Fib retracement level of the key decline from the $0.525 high to $0.435 low is also near the $0.480 zone. A clear move above the $0.480 resistance could spark a strong increase. The next major resistance is near $0.510.
Any more gains might open the doors for a move towards the $0.550 resistance. The main target for the bulls may perhaps be near the $0.580 level.
Conversely, ADA price might fail to clear the $0.480 resistance zone. In the mentioned case, the price could start another decline below the $0.450 support. The next major support is near $0.435, below which the price may perhaps dive towards $0.400. Any more losses may perhaps clear the path for a test of the $0.362 support.
Overall, ADA price broke a major technical pattern near $0.450. If the bulls remain in action, the price could easily revisit the $0.500 resistance zone. Conversely, there might be a fresh drop to $0.435.
