Key Takeaways:
- ADA price is attempting an upside break above the $0.374 resistance zone.
- It faces a key bearish trend line with resistance near $0.375 on the 4-hour chart.
- The price must clear $0.375 and $0.380 to start a new rally.
NEW DELHI (CoinChapter.com) — Cardano’s ADA is slowly moving higher toward the $0.375 resistance. It could start a steady increase if there is a close above $0.375.
Cardano Price Eyes Upside Break
ADA started a fresh decline from the $0.386 resistance against the US Dollar this past week. The price declined below the $0.380 support to move into a bearish zone.
It tested the $0.3620 support. A low was formed near $0.3612, and the price is now attempting a new increase, similar to Ethereum. There was a break above the 50 simple moving average (4 hours, blue) and $0.365.
The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $0.3863 swing high to the $0.3613 low.
On the upside, ADA faces strong resistance near the $0.345 level. There is also a key bearish trend line with resistance near $0.375 on the 4-hour chart. In addition, the trend line is close to the 50% Fib retracement level of the downward move from the $0.3863 swing high to the $0.3613 low.
If there is a break above the trend line resistance, the price could test the $0.380 resistance. To start a fresh rally, Cardano must settle above $0.380.
In the stated case, ADA might rise toward the $0.40 resistance. The next key resistance might be near the $0.420 level, above which the price could test $0.432. Finally, any more gains might send the price toward $0.45.
Another Drop in ADA?
If there is no move above the $0.38 resistance, the price might start another decline. On the downside, ADA price might find support near the $0.370 zone and the 50 simple moving average (4 hours, blue).
The first major support sits near the $0.362 level. The next major support is near $0.356. A downside break and close below the $0.356 support could spark strong bearish moves in Cardano. The price might drop toward the $0.320 support in the stated case.
ADA is approaching major breakout resistance at $0.375 and $0.380. A close above $0.380 could start a fresh surge. Conversely, there could be another decline toward the $0.362 support soon.
