The Potential Upside for Cardano (ADA) as Resistance Level is Tested

The Potential Upside for Cardano (ADA) as Resistance Level is Tested

Cardano (ADA) has recently gained momentum, attempting a fresh increase from the $0.4720 zone. With a close above the $0.5350 resistance, ADA could potentially start a strong rally. In this article, we will analyze the current market situation for Cardano and discuss the potential upside for the cryptocurrency.

Cardano’s price is currently moving higher above the $0.500 zone, indicating a positive trend. The price is trading above $0.512 and the 100 simple moving average (4 hours), which reinforces the bullish sentiment. Additionally, there was a break above a key bearish trend line with resistance near $0.510 on the 4-hour chart of the ADA/USD pair (data source from Kraken). These technical indicators suggest that the bulls are gaining control.

After forming a base above the $0.4720 level, Cardano started a fresh increase. ADA price was able to climb above the $0.485 and $0.500 resistance levels, similar to Bitcoin and Ethereum. This positive movement indicates that Cardano is following the overall market trend. Moreover, the break above the bearish trend line with resistance near $0.510 further strengthens the bullish outlook for ADA.

The bears are now active near the $0.535 resistance zone, which is currently limiting Cardano’s upside. However, if there is a clear move above $0.535 and $0.550, the price could potentially start a strong rally. The first resistance levels to watch are near $0.545 and $0.550. If Cardano manages to close above the $0.565 resistance, it could trigger a significant upward movement, potentially pushing the price toward the $0.600 region. Further gains might even call for a move toward $0.620.

If Cardano’s price fails to climb above the $0.535 resistance level, it could initiate a fresh decline. In such a scenario, the immediate support on the downside can be found near the $0.520 level. The next major support is near the $0.5040 level or the 50% Fib retracement level of the recent increase from the $0.4718 swing low to the $0.5354 high. A downside break below the $0.5040 level could potentially open the doors for a test of $0.485. The ultimate support is located at the $0.4720 level.

Analyzing the 4-hour MACD for ADA/USD, we can observe that it is currently losing momentum in the bullish zone. This might suggest a temporary consolidation period or a potential reversal. However, the 4-hour RSI (Relative Strength Index) is now above the 50 level, indicating a bullish sentiment. It is important to note that technical indicators should be used in conjunction with other tools to make informed investment decisions.

Cardano (ADA) is currently in a favorable position for potential upside. With a close above the $0.535 resistance level, ADA could start a strong rally, pushing the price toward higher resistance levels. However, a failure to break above the resistance zone could result in a fresh decline. As always, investors should conduct their own research and analysis before making any investment decisions.

Analysis

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