Key Takeaways:
- ADA price is attempting a new increase from the $0.375 support zone.
- It faces a major bearish trend line with resistance near $0.410 on the 4-hour chart.
- The price must clear $0.41 and $0.42 to start a fresh rally in the coming sessions.
NEW DELHI (CoinChapter.com) — Cardano’s ADA is recovering above the $0.395 and $0.400 levels. The bulls must gain strength for a move above $0.41 and $0.42.
Cardano (ADA) Price Recovers Sharply
This past week, ADA saw a major decline below the $0.42 support against the US Dollar. The price traded below the $0.40 support zone to move into a short-term bearish zone, similar to Bitcoin and Ethereum.
It tested the $0.375 support base and recently started an upside correction. There was a strong recovery wave from the $0.3762 low. Cardano climbed above the 23.6% Fib retracement level of the downward move from the $0.4614 swing high to the $0.3762 low.
It spiked above the $0.40 resistance and the 50 simple moving average (4 hours, blue). ADA is now facing resistance near the $0.41 level.
A major bearish trend line is forming with resistance near $0.410 on the 4-hour chart. If there is a break above the trend line resistance, the price could drift toward the 50% Fib retracement level of the downward move from the $0.4614 swing high to the $0.3762 low.
The main resistance and breakout zone sits near $0.42. A daily close above the $0.42 level is a must to start a steady increase. The next key resistance might be near the $0.450 level. A clear move above the $0.450 resistance could increase the price. In the stated case, ADA might rise toward $0.50.
Another Drop?
If there is no move above the $0.42 resistance, the price might resume its decline. On the downside, ADA price might find support near the $0.395 zone.
The main support sits near the $0.375 level. A close below the $0.375 support could trigger another sharp decline in Cardano. The price might drop toward the $0.350 support in the stated case.
Overall, ADA is reversing losses and trading above the $0.40 level. However, to continue higher and gain bullish momentum, the price must surpass $0.42. Conversely, another downward move could be toward the $0.375 support in the near term.
