- ADA price started a fresh rally above the $1.500 resistance zone against the US Dollar.
- The price is now trading well above $1.500 support and the 55 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $1.500 on the 4-hours chart (data feed via Bitfinex).
- The price could correct further lower, but the bulls are likely to remain active near $1.550 and $1.500.
Cardano price is correcting gains from well above $1.800 against the US Dollar, similar to bitcoin. ADA price could revisit $1.500 before starting a fresh increase.
Cardano Price Analysis
After forming a base above the $1.200 level, cardano price started a fresh rally against the US Dollar. The ADA/USD pair broke the $1.350 and $1.420 resistance levels to move into a positive zone.
It even cleared the $1.500 level and settled above the 55 simple moving average (4-hours). The bulls gained strength and pushed the price above the $1.800 level. ADA traded to a new yearly high near $1.836 before it started a downside correction.
There was a sharp decline below the $1.700 and $1.650 support levels. The price even spiked below the $1.550 support, but the bulls were active above $1.500. It is now trading well above $1.500 support and the 55 simple moving average (4-hours).
A low is formed near $1.528 and the price is recovering losses. It broke the $1.600 resistance level. There was also a break above the 23.6% Fib retracement level of the recent decline from the $1.836 high to $1.528 low.
There is also a major bullish trend line forming with support near $1.500 on the 4-hours chart. On the upside, an initial resistance on the upside is near the $1.680 level. It is near the 50% Fib retracement level of the recent decline from the $1.836 high to $1.528 low.
A clear break above the $1.680 level could start a fresh rally. The main resistance sits near $1.800, above which the price is likely to accelerate higher towards the $2.00 barrier in the near term.
On the downside, an intermediate support could be $1.550. The main support sits at $1.500, below which the price could dive towards the $1.400 level.
The chart indicates that ADA price is clearly trading well above $1.500 support and the 55 simple moving average (4-hours). Overall, the price could correct further lower, but the bulls are likely to remain active near $1.550 and $1.500.
Technical Indicators
4 hours MACD – The MACD for ADA/USD is now losing pace in the bearish zone.
4 hours RSI – The RSI for ADA/USD is just below the 50 level.
Key Support Levels – $1.550 and $1.500.
Key Resistance Levels – $1.680 and $1.800.
