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.
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.
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.
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.
