Cardano (ADA) is gearing up for a fresh surge above the $0.4500 resistance zone. With ADA potentially gaining bullish momentum upon settling above the 100 SMA (H4), investors eagerly anticipate the next move. 📈
Cardano Price Attempts Fresh Increase
In recent days, Cardano embarked on a recovery journey from the $0.4180 zone, mirroring the upward trend of Bitcoin and Ethereum. ADA confidently breached the $0.4350 and $0.4420 levels, ushering it into a short-term bullish territory. 🔄
A significant breakthrough occurred with the emergence above the 23.6% Fib retracement level of the downward trajectory from the $0.5227 swing high to the $0.4180 low. Notably, a crucial bearish trend line succumbed to ADA's upward surge, with resistance vanishing at $0.4580 on the 4-hour chart of the ADA/USD pair. 📈
Challenges Ahead and Potential Rally
Despite the momentum, Cardano finds itself trading below $0.480 and the 100 simple moving average (4 hours). Immediate obstacles lie around the $0.4650 zone and the 100 SMA (4 hours). The first significant resistance rests near $0.470, representing the 50% Fib retracement level. 🛑
Yet, the ultimate test looms at $0.4980. A decisive breach above this resistance could catalyze a robust rally, propelling ADA towards the $0.5250 and potentially even $0.5650 levels. 🚀
Potential Setback and Support Levels
However, should Cardano stumble in overcoming the $0.470 resistance and the 100 SMA (4 hours), a retracement may occur. Immediate support awaits near the $0.450 level, followed by a crucial barrier at $0.4350. 📉
A breach below $0.4350 might trigger a deeper downturn, possibly testing the $0.4180 support. Further downwards, the $0.3880 level stands as a significant stronghold. 🛡️
Technical Indicators
- 4-hour MACD: The MACD for ADA/USD indicates waning momentum in the bearish zone.
- 4-hour RSI (Relative Strength Index): ADA/USD's RSI now hovers above the 50 level, hinting at bullish sentiment.
Conclusion
As Cardano navigates through key resistance levels, investors closely monitor its trajectory. A successful breach could pave the way for substantial gains, while setbacks may prompt consolidation and reassessment. ADA's performance in the coming sessions will be critical in shaping its near-term outlook. Stay tuned for further updates!