The key resistance break and potential Cardano (ADA) rally

ADA has recently bounced off the $0.350 support and if it can break the higher resistances like 0.388 and 0.395 that will be an indication that the bullish rebound has begun.

Key Support Levels for Cardano’s positivity trajectory

The price of cardano is now rising above the crucial $0.375 point. It trades above$0.380 for four hours and remains above the 100 SMA. A strong bearish trend line has also been established with support at $0.370 on ADA/USD 4 hourly charts (source, Kraken).

Therefore, this increasing nature is positive and may indicate that the ADA price increases towards at least $ 0.420 or $ 0.450.

Cardano’s market performance in recent times

Similar movements were earlier witnessed in Bitcoins and Ethereums; the most recent being a correction downwards from the USD 0.4090 which dropped below US$ 0.395 and US$ 0.388 supports towards ADA.

The currency however maintained its base around $0.350 and $0.3494 respectively before continuing with an upward trend. It moved past the $0.365 and $0.375 resistance levels as well as the 50% of the Fibonacci retracement that was brought about by the decline that occurred from $0.4090 to $3494.

Cardano now trades above the $0.375 level and the 100 Simple Moving Average(SMA) (4 hour) supported by a strong bullish trendline established around the $0.370 support level on the 4 hour chart.

At $0.3880, immediate resistance is expected, with a second level at $0.395 looking upwards. However, rising above that may be a push towards the $0.420 zone and even further gains that can shoot past $0.450.

Cardano's Support and Resistance Dynamics

A failure by ADA to break through the $0.388 resistance might lead to a correction within the downward direction. The immediate support is located near $0.370 while including the trendline and at $0.365 as it is supported by the 100th hourly SMA. However, a break below $0.365 will see a test on the lower $0.350 support with another one coming in at $0.335.