Cardano price started a downside correction from the $0.1015 resistance. ADA tested the $0.0820 support and now it seems to be preparing for a larger rally above $0.1000.
- Cardano price traded to a new 2019 high at $0.1016 before correcting lower.
- The $0.0820 level acted as a support and recently there was a break above a key bearish trend line at $0.0880 on the 2-hours chart.
- ADA is likely to accelerate higher once it clears the $0.0940 and $0.0950 resistance levels.
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Cardano Price Analysis (ADA to USD)
This past week, there was a strong rally in cardano price above the $0.0850 resistance level against the US dollar. ADA climbed above the $0.0940 resistance area and traded to a new 2019 high at $0.1016 before starting a downside correction.
Click to Enlarge Chart
Looking at the 2-hours chart of ADA/USD, the pair declined below the $0.0940 and $0.0920 support levels. There was even a close below the $0.0940 pivot level and the 25 simple moving average (2-hours).
Besides, the price traded below the $0.0855 support and the 50% Fib retracement level of the last rally from the $0.0690 low to $0.1016 high. However, the $0.0820-0.0825 area acted as a strong support and prevented further downsides.
It seems like the price tested the 61.8% Fib retracement level of the last rally from the $0.0690 low to $0.1016 high and completed a short term downside correction. There were a couple of attempts to clear the $0.0820 support, but bears failed to gain control.
The price is currently moving higher and it recently broke a key bearish trend line at $0.0880 on the same chart. It is now trading nicely above $0.0850 and the 25 simple moving average (2-hours).
Therefore, there are chances of more gains in cardano if bulls take out the key $0.0940 resistance area. The next major hurdle for bulls is near $0.1000, above which the price is likely to climb above the $0.1016 high.
Overall, cardano price is placed nicely in an uptrend above the $0.0820 support and it seems like ADA could continue to rise towards $0.0940, $0.1000 or even $0.1045.
The market data is provided by TradingView, Binance.