The coin price has repeatedly reversed down from the channel line, indicating that sellers were aggressively using the trendline to undermine Cardano's future growth.
Cardano's price is exhibiting positive signs above $0.350 against the US Dollar, similar to Bitcoin. If Cardano is able to break through the $0.388 resistance, it could extend its gains. This week, Cardano's price began a strong surge above the $0.320 resistance zone against the US Dollar. The ADA/USD pair gained momentum, pushing it past the $0.335 and $0.350 levels.
During the surge, a major bearish trend line with resistance near $0.348 on the 4-hour chart was broken. This enabled the price to break through the $0.370 level and settle well above the 100-hour simple moving average. The price reached a peak of $0.3872 before beginning a downward correction.
The price dropped below the $0.382 and $0.380 levels, and even dipped slightly below the 23.6% Fibonacci retracement level of the upward move from the $0.3237 swing low to $0.3872 high. However, it is currently trading above $0.350 and the 200-hour simple moving average.
On the four-hour chart, Cardano is trading within an ascending parallel channel line, as well as forming an inverted head and shoulders pattern. This suggests that ADA is likely to experience a bullish breakout in the near future, providing traders with an opportunity to capitalise on the potential upside.
On the daily chart, yesterday a Doji candle formed after a four-day bullish rally. Over the last four days, ADA prices have surged from the lower channel to the upper channel.
On the upside, an immediate resistance is near the $0.385 zone. A successful break above this level could spark a strong surge in the price of ADA, with the next major resistance being near the $0.400 level. If the bulls can push the price above this level, it could potentially lead to further gains towards the $0.420 and $0.432 levels.
However, if ADA fails to break through the $0.385 resistance zone, it could trigger a downward correction. In this case, an immediate support is near the $0.370 level, with the next major support being near the $0.355 level, which is close to the 50% Fibonacci retracement level of the upward move from the $0.3237 swing low to $0.3872 high. If the bears manage to push the price below the $0.350 level, it could lead to further losses towards the $0.332 and $0.320 levels.
According to Price Analysis, the market capitalization of this ADA is expected to be $13,109,749,488. The coin's 24-hour trading volume is nearly $391,243,559. The market capitalization of ADA has increased by 0.25%. However, trading volume decreased by 39.18% during intraday trading.
KEY LEVELS :
RESISTANCE LEVEL : $0.3880-$0.4000
SUPPORT LEVEL : $0.3700-$0.3570
There are conflicting signals between technical indicators and the price action of ADA. Nevertheless, after a slight correction, ADA appears to be resuming its bullish trend. Can it reclaim its previous high? Share your thoughts in the comments section below.