Cardano Price Consolidates Above $0.700 with Potential for Gains
Cardano (ADA) is consolidating above the $0.700 zone, holding gains and potentially targeting an increase above $0.7880.
- ADA began a correction after rallying to $0.8200.
- The price trades above $0.740 and the 100-hourly simple moving average.
- A break occurred above a short-term contracting triangle with resistance at $0.7550 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could initiate another increase if it surpasses the $0.7880 resistance zone.
Cardano Price Holds Gains Above Support
Recently, Cardano experienced a significant increase above the $0.50 resistance, outperforming Bitcoin and Ethereum. It surpassed the $0.650 and $0.750 resistance levels, reaching a high of $0.8199 before pulling back. The price tested the $0.6880 support and is currently rising, having moved above the $0.740 resistance and the 50% Fib retracement level of the decline from $0.8199 to $0.6893.
Additionally, there was a break above the contracting triangle with resistance at $0.7550, positioning Cardano above $0.740 and the 100-hourly simple moving average.
On the upside, resistance may emerge near $0.7750, with the first key resistance at $0.7880 or the 76.4% Fib retracement level from the previous swing high. A further key resistance is at $0.8180.
If the price closes above $0.8180, it could trigger a rally toward $0.8800, with potential gains extending to $0.950.
Are Dips Supported in ADA?
If Cardano fails to surpass the $0.7880 resistance, a decline may occur. Immediate support is near $0.750, followed by major support around $0.740. A drop below $0.740 could lead to a test of $0.6880, with further major support at $0.600 where buying interest might re-emerge.
Technical Indicators
Hourly MACD: Gaining momentum in the bullish zone.
Hourly RSI: Currently above the 50 level.
Major Support Levels: $0.7400 and $0.7200.
Major Resistance Levels: $0.7880 and $0.8180.