Key Takeaways:
- ADA is eyeing a steady increase above the $0.270 resistance zone.
- It broke a major bearish trend line with resistance near $0.260 on the 4-hour chart.
- The price could rise further toward the $0.30 and $0.32 resistance levels.
ADA Price Prediction | Photo by Michael Förtsch on Unsplash
New Delhi: Cardano’s ADA is attempting a fresh increase above $0.260. It could start a fresh rally if there is a close above the $0.30 resistance zone.
Cardano Price Starts Recovery
This month, ADA saw a strong decline below the $0.32 support against the US Dollar. The price declined below the $0.300 support to move into a bearish zone.
It tested the $0.220 support. A low was formed near $0.2205 and the price is now attempting a fresh increase, similar to Ethereum and Bitcoin. There was a break above the 50 simple moving average (4 hours, blue) and $0.250.
Cardano’s 4-hours price chart | Source: ADAUSD on TradingView.com
The bulls were able to push the price above the 23.6% Fib retracement level of the downward move from the $0.3820 swing high to the $0.2205 low.
Besides, ADA broke a major bearish trend line with resistance near $0.260 on the 4-hour chart. On the upside, It is facing strong resistance near the $0.282 level. The first major resistance is near the $0.290 level, above which the price could test the 50% Fib retracement level of the downward move from the $0.3820 swing high to the $0.2205 low at $0.30.
If there is a break above the $0.30 resistance, the price could test the $0.320 resistance. To start a fresh rally, Cardano must settle above $0.30 and then jump above $0.320. In the stated case, ADA might rise toward the $0.38 resistance.
Fresh Decline in ADA?
If there is no move above the $0.30 resistance, the price might start another decline. On the downside, ADA price might find support near the $0.265 zone and the 50 simple moving average (4 hours, blue).
The first major support sits near the $0.252 level. The next major support is near $0.220. A downside break and close below the $0.220 support could spark more bearish moves in Cardano. In the stated case, the price might drop toward the $0.200 support.
Overall, ADA is attempting a recovery wave above the $0.265 resistance. A close above $0.30 could start a steady rally. Conversely, there could be another decline toward the $0.252 support in the near term.
