Cardano price begins a consolidation phase above the $0.700 area. ADA holds its gains and may aim to rise again above $0.7880.
ADA price started a downward correction after a strong rebound to $0.8200.
Price trades above $0.740 and the 100-hour simple moving average.
On the hourly chart of the ADA/USD pair, it broke the short-term contracting triangle, with resistance at $0.7550 (data source from Kraken).
If the pair breaks above the resistance area of $0.7880, it may begin to rise again.
Cardano price maintains gains above the support level.
In the past few days, Cardano has surged above the $0.50 resistance level. ADA surpassed Bitcoin and Ethereum. It broke through the resistance levels at $0.650 and $0.750.
It even broke above the $0.800 level, forming a high at $0.8199 before the pullback. The price tested the support level at $0.6880 and is currently rising. It broke through the resistance level at $0.740.
Additionally, on the hourly chart of the ADA/USD pair, it broke the short-term contracting triangle with resistance at $0.7550. Cardano price is now trading above $0.740 and the 100-hour simple moving average.
On the positive side, the price may face resistance around the $0.7750 area. The first resistance level is near $0.7880 or around the 76.4% Fibonacci retracement level from the swing high of $0.8199 to the swing low of $0.6893. The next key resistance level may 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 could rise to the $0.8800 area. Any further gains may require a move towards $0.950.
Does ADA support dips?
If the price of Cardano fails to rise above the resistance level of $0.7880, it may start to decline again. The direct support level is around $0.750.
The next major support level is around $0.740. Falling below the $0.740 level may open the door to test $0.6880. The next major support level is around $0.600, where bulls may appear.
Technical Indicators
Hourly Chart MACD - The MACD for ADA/USD gains momentum in the bullish zone.
Hourly RSI (Relative Strength Index) - The RSI for ADA/USD is now above the 50 level.
Major support levels - $0.7400 and $0.7200.
Major Resistance Levels - $0.7880 and $0.8180.