Cardano Price Holds Strong At $0.38 — Why ADA Could Pump Again

By Aayush Jindal 3 Min Read
Cardano ADA cryptocurrency golden coin over the chart. Price trend graph with growing and falling line. Online payment and transaction abstract concept 3d illustration.
Cardano Price Holds Strong At $0.38 — Why ADA Could Pump Again

Cardano’s ADA is consolidating above the $0.385 and $0.380 support levels. The bulls might aim a fresh increase unless there is a clear move below $0.374.

Cardano (ADA) Price Eyes Another Increase

This week, ADA saw a decent upward move from the $0.350 support zone against the US Dollar. The price broke the $0.374 and $0.380 resistance levels to move into a positive zone.

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Besides, Cardano’s price broke a major bearish trend line with resistance near $0.390 on the 4-hours chart. The upward move was strong and the price even climbed above $0.40. The price traded as high as $0.4215 and recently started a downside correction, similar to Bitcoin and Ethereum.

Cardano’s 4-hours price chart
Cardano’s 4-hours price chart | Source: ADAUSD on TradingView.com

The price declined below the $0.400 and $0.392 support levels. There was a clear move below the 23.6% Fib retracement level of the upward move from the $0.345 swing low to the $0.421 high.

ADA price is now retesting the broken trend line and is trading well above the 50 simple moving average (4 hours, blue). It is also above the 50% Fib retracement level of the upward move from the $0.345 swing low to the $0.421 high.

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On the upside, Cardano is facing resistance near the $0.405 level. The first major resistance is near the $0.420 level. A successful close above the $0.42 level might start a strong increase. The next key resistance might be near the $0.450 level.

A clear move above the $0.450 resistance could increase the price. The next major resistance is near $0.485, above which it could revisit $0.50.

More Downsides in ADA?

If there is no move above the $0.405 resistance, the price might resume its decline. On the downside, ADA price might find support near the $0.382 zone. It is close to the 50% Fib retracement level of the upward move from the $0.345 swing low to $0.421 high.

The main support sits near the $0.375 level and the 50 simple moving average (4 hours, blue). A close below the $0.375 could trigger another sharp decline. In the stated case, the price might be toward the $0.350 support or even $0.335.

Overall, ADA seems to be aiming a fresh increase above the $0.405 resistance level. If the bulls succeed, the price might rise toward the $0.45 level or even $0.50. Conversely, there could be another downward move toward the $0.350 support.

Aayush Jindal

Aayush specializes in market strategies and technical analysis, and spent over a DECADE as a financial markets contributor and observer.

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