Cardano’s price found a crucial support level near $0.3050, and ADA is now showing signs of recovery, poised for potential gains above the $0.3360 resistance mark.
After facing significant decline, Cardano established a support above the $0.30 zone, with a low at $0.3050. From this point, it began an upward recovery, much like Bitcoin and Ethereum. The price successfully climbed past the $0.3200 and $0.3220 resistance levels. A notable move above the 23.6% Fibonacci retracement level of the descent from the $0.3673 swing high to the $0.3050 low further emphasized its recovery. Additionally, a break above a key bearish trend line with resistance at $0.3245 was observed on the hourly chart of the ADA/USD pair, indicating a shift in momentum.
Currently, Cardano’s price is trading above $0.4220 and the 100-hourly simple moving average. Despite this positive trend, the price may encounter resistance near the $0.330 zone. The initial resistance is pegged near $0.3360, which corresponds to the 50% Fibonacci retracement level of the previous downward move.
Looking ahead, the next significant resistance is anticipated near $0.3450. Should the price manage to close above this level, it could spark a robust rally, propelling it towards the $0.3680 region. Further gains might drive the price towards $0.400.
However, if Cardano’s price struggles to surpass the $0.3360 resistance, it could face another downturn. Immediate support is identified near the $0.320 level, with the next major support around the $0.3120 mark. A break below this level could lead to a test of the $0.3050 support. Beyond this, the crucial support level is at $0.3000, where bullish forces might reemerge.
Technically, the hourly MACD for ADA/USD is gaining momentum in the bullish zone, while the hourly RSI (Relative Strength Index) is positioned above the 50 level, further indicating a positive outlook.
Key support levels stand at $0.3200 and $0.3050, with major resistance levels at $0.3360 and $0.3450. As Cardano navigates these crucial thresholds, market participants keenly observe its movements, anticipating whether it will maintain its upward trajectory or face renewed downward pressure.
