Cardano price recently found a strong support level near $0.3050 and has since embarked on a recovery journey. The price is currently trading above $0.320 and the 100-hourly simple moving average, indicating a bullish momentum in the market. Furthermore, there was a significant breakout above a key bearish trend line with resistance at $0.3245 on the hourly chart of the ADA/USD pair, sourced from Kraken. This breakout suggests that Cardano may continue to climb higher as long as it stays above the $0.3200 support zone.
Cardano Price Shows Signs of Steady Recovery
After experiencing a sharp decline, Cardano managed to find support above the $0.30 level. A low was formed at $0.3050, and the price is now attempting a recovery wave similar to other major cryptocurrencies like Bitcoin and Ethereum. The recent price action saw ADA surpass key resistance levels at $0.3200 and $0.3220, as well as break above the 23.6% Fibonacci retracement level of the downward move from the $0.3673 swing high to the $0.3050 low. Additionally, the breakout above the bearish trend line at $0.3245 on the hourly chart signals a potential uptrend for Cardano.
Currently, Cardano is trading above $0.3220 and the 100-hourly simple moving average, setting the stage for further upside potential. Moving forward, the price might encounter resistance around the $0.330 level, with the first major hurdle around $0.3360 or the 50% Fibonacci retracement level of the recent downward move. If Cardano manages to break above the $0.3360 resistance level, it could pave the way for a strong rally towards the $0.3680 region and possibly even higher, targeting $0.400.
For a visual representation of Cardano’s price movement, you can refer to the chart below:
The next crucial resistance levels for Cardano are projected to be around $0.3450, with a potential breakout signaling a strong upward movement. On the flip side, if Cardano fails to surpass the $0.3360 resistance level, it could lead to another decline in price. Immediate support is expected near $0.320, followed by a major support level at $0.3120. A breakdown below $0.3120 could result in a test of the $0.3050 support, with the next significant level at $0.3000 where bullish investors may step in to push the price higher.
Technical Indicators and Price Analysis
From a technical perspective, the hourly MACD for ADA/USD is exhibiting bullish momentum, indicating a potential uptrend in the near term. The hourly RSI (Relative Strength Index) for ADA/USD is also above the 50 level, suggesting bullish sentiment among traders and investors. Major support levels for Cardano are identified at $0.3200 and $0.3050, while key resistance levels are seen at $0.3360 and $0.3450.
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In conclusion, Cardano’s price has shown signs of recovery after finding support near $0.3050. With bullish momentum building up, the price is poised for further gains above the $0.3360 resistance level. However, a failure to break above this level could trigger another downside move, with key support levels at $0.3200 and $0.3050. Traders and investors should closely monitor price movements and key technical levels to make informed decisions in the dynamic cryptocurrency market.
