Cardano (ADA) Price Following Uptrend, More Gains Seem Likely

Cardano price is placed nicely in an uptrend against the US Dollar and Bitcoin. ADA might correct lower, but it is likely to climb above the $0.0475 level in the near term.

Cardano Price Analysis

After testing the $0.0400 support, cardano price started a solid upward move against the US Dollar. The ADA/USD pair climbed above the $0.0420 level and later consolidated for a few sessions. Finally, a solid support base was formed and the price started a strong rally. The price broke the $0.0440 and $0.0450 resistance levels to move into a positive zone. There was even a close above the $0.0450 level and the 55 simple moving average (4-hours).

Buyers pushed the price above the $0.0475 level and a new monthly high was formed at $0.0482. Recently, the price corrected lower below the 23.6% Fibonacci retracement level of the last leg from the $0.0420 low to $0.0482 high. There was even a break below the $0.0470 level, but the $0.0460 level is acting as a support. Besides, there is a key ascending channel in place with support at $0.0460 on the 4-hours chart. Below the channel support, the next support is near the $0.0450 level.

The 50% Fibonacci retracement level of the last leg from the $0.0420 low to $0.0482 high is also near the $0.0450 level. The main support is near the $0.0445 level and the 55 simple moving average (4-hours). It also coincides with the previous resistance zone near $0.0444. Therefore, if there is a downside correction, the price is likely to find a strong buying interest near the $0.0450 support level. On the upside, an initial resistance is near the $0.0475 level, followed by $0.0480.

The chart indicates that ADA price is following a solid bullish path above the $0.0450 support level. In the short term, there could be a downside correction, but the $0.0450 and $0.0445 levels are likely to prevent losses. On the upside, buyers are likely to push the price above the $0.0475 and $0.0482 high in the near term.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is slowly reducing its bullish slope.

4 hours RSI – The RSI for ADA/USD is currently correcting lower towards the 50 level, with a bearish angle.

Key Support Levels – $0.0450 and $0.0445.

Key Resistance Levels – $0.0475 and $0.0480.

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