Key Takeaways:
– Cardano (ADA) is entering a consolidation phase around the $1.00 mark.
– ADA is maintaining its earnings and is likely to target a new increase over $1.05.
– Starting from $0.88, ADA price has commenced an upward trend.
– Currently trading above $0.95, ADA is also above the 100-hourly simple moving average.
– A crucial bearish trend line is detected with resistance around $1.02 in the ADA/USD pair’s hourly chart.
– A new increase is expected if ADA clears the $1.05 resistance zone.
Embracing the Consolidation Phase
In recent days, Cardano exhibited a fresh surge surpassing the resistance of $0.85. Just like Bitcoin and Ethereum, ADA has managed to maintain a positive position. Notably, ADA’s price rose above resistance levels of $0.88 and $0.92. It went past the 50% Fibonacci retracement level of the downward movement from the $1.15 high to the $0.87 low. Even though it cleared the $1.00 mark, bearish trends are now visible close to the $1.05 mark. Significantly, the ADA/USD pair forms a crucial bearish trend line with resistance at $1.02.
Adjacent to the 61.8% Fibonacci retracement level of the downward move from a high of $1.15 to a low of $0.87, this trend line is becoming more visible. At the moment, ADA is trading over $0.95 and the 100-hour hourly simple moving average.
Potential Resistance and Support
On a positive note, the price could hit a resistance close to the $1.02 zone. The initial resistance resides near $1.05 with a subsequent notable resistance possibility at $1.08. Should there be a close above the $1.08 resistance, it could trigger a robust rally. In that scenario, the price may rise towards the $1.15 region, with any additional gains suggesting a possible move toward $1.20.
Should the Cardano price fail to rise above the $1.05 resistance mark, it could signify another decline. Immediate support on the downfall is located near the $0.96 level. The subsequent main support resides near the $0.93 level. Breaking below $0.93 could pave the way for a test of $0.88. The following significant support is near the $0.84 zone, where the bulls may reemerge.
Indicator Analysis
The hourly Moving Average Convergence Divergence (MACD) indicates that ADA/USD is gaining momentum in the bullish zone. The Relative Strength Index (RSI) for ADA/USD is currently above the 50-level suggesting a satisfactory strength. Major support levels are observed at $0.96 and $0.93 whereas resistances are at $1.02 and $1.05. These technical indicators are significant in determining the potential future of ADA prices. However, those interested in ADA should keep an eye on its price trend as market conditions can swiftly change.
In Conclusion
Investors and traders are closely watching Cardano after its impressive performance in the past few months. As the cryptocurrency market at large experiences unprecedented growth and increasing interest from institutional investors, ADA’s price is anticipated to reflect the overall bullish market sentiment. However, as the recent consolidation phase and bearish trend lines suggest, the road might not be entirely smooth. It is advisable to stay informed about market trends and react accordingly. Now, more than ever, it’s crucial to keep a close eye on ADA’s price journey as it has the potential to deliver interesting outcomes.