Key Takeaways:
- ADA price started a fresh increase from the $0.465 support.
- It broke a major contracting triangle with resistance at $0.550 on the daily chart.
- The price could rally over 20% and revisit the $0.70 level.
New Delhi(CoinChapter.com): Cardano (ADA) is signaling a bullish breakout above $0.550. The bulls are gaining strength, and they might pump the price toward $0.70 or $0.75.
Cardano Price Turns Green
After a major downside correction, ADA price found support near the $0.4650 zone. A low was formed at $0.4651 and the price recently started a fresh increase, like Ethereum. There was a steady move above the $0.500 and $0.520 resistance levels.
Cardano broke a major contracting triangle with resistance at $0.550 on the daily chart. There was a daily close above the $0.550 resistance zone and the 50-day simple moving average (blue). The bulls even pushed the price above the 50% Fib retracement level of the downside correction from the $0.6773 swing high to the $0.4651 low.
ADA price is now showing positive signs above the $0.570 resistance level. If it follows Bitcoin and Solana, there could be a strong move in the coming sessions.
Immediate resistance is near the $0.595 level. It is close to the 61.8% Fib retracement level of the downside correction from the $0.6773 swing high to the $0.4651 low. The next major resistance is near the $0.628 level, above which Cardano could accelerate higher toward the $0.678 zone.
A close above the $0.678 zone could open the doors for more upsides. The first key resistance could be near the $0.700 zone. Any more gains might send ADA toward the $0.750 level.
Fundamentally, Cardano’s TVL increased 166% QoQ and 693% YoY in the fourth quarter of 2023. Its TVL ranking increased from 34th at the beginning of 2023 to 11th, according to the report published on Messari by Red Sheehan. These are positive signs and might lead to steady inflows in the near term.
Are Dips Supported in ADA?
If there is no move above $0.600, ADA price could correct lower. Immediate support is near the $0.550 level and the same trend line. The first major support is near the 50-day simple moving average (blue) at $0.532.
The next major support is near the triangle zone at $0.500, below which there is a risk of a drop toward the $0.465 level. Any more losses might increase selling pressure and send Cardano toward $0.420.
Overall, ADA is showing bullish signs above the $0.555 level. If the bulls remain in action, Cardano could rally further toward the $0.678 level or $0.700. Conversely, the price could correct lower and revisit the $0.532 support zone.
