Cardano's price has started a consolidation phase above the $0.700 area. ADA remains bullish and may aim for new gains above $0.7880.
After a strong rise to $0.8200, ADA's price started a downward correction.
The price is currently trading above $0.740 and the 100-hour simple moving average.
On the hourly chart of ADA/USD, it broke through a short-term contracting triangle, with resistance at $0.7550 (data from Kraken).
If the currency pair breaks through the resistance area of $0.7880, it may start to rise again.
Cardano's price remains above the support level.
In the past few days, Cardano has surged significantly, breaking through the $0.50 resistance level. ADA has outperformed Bitcoin and Ethereum. It broke through the resistance levels of $0.650 and $0.750.
It even broke above the $0.800 level. Before the pullback, the price formed a high at $0.8199. The price tested the support level of $0.6880 and is currently rising. The price broke through the resistance level of $0.740. The price climbed above the 50% Fibonacci retracement level of the downward move from $0.8199 high to $0.6893 low.
Additionally, on the hourly chart of ADA/USD, it broke through a short-term contracting triangle, with resistance at $0.7550. Cardano's price is currently trading above $0.740 and the 100-hour simple moving average.
On the upside, the price may face resistance near the $0.7750 area. The first resistance level is around $0.7880, which is the 76.4% Fibonacci retracement level of the downward move from $0.8199 high to $0.6893 low. The next key resistance level could be $0.8180.
If the closing price is above the resistance level of $0.8180, the price may begin to rebound strongly. In this case, the price may rise to the $0.8800 area. If it rises further, it could fall to $0.950.
Does ADA support dips?
If Cardano's price fails to break through the resistance level of $0.7880, it may drop again. The immediate support level on the downside is around $0.750.
The next major support level is around $0.740. A drop below $0.740 could open the door to test $0.6880. The next major support level is near $0.600, where bulls may appear.
Technical Indicators
Hourly MACD - The MACD of ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) - The RSI of ADA/USD is now above the 50 level.
Major support levels - $0.7400 and $0.7200.
Major resistance levels - $0.7880 and $0.8180.
