The ADA price entered a consolidation phase above the $0.700 area and maintained an upward trend. It is likely to seek new gains above $0.7880. Earlier, the ADA price rose strongly to $0.8200 and then started a downside correction.
Currently, the price is trading above $0.740 and the 100 hourly simple moving average. On the hourly chart of the ADA/USD pair, the pair has broken out of a short-term contracting triangle with resistance at $0.7550. If it can break above the $0.7880 resistance zone, it is likely to start another up move.
Cardano (ADA) price maintains gains and trades above support levels
Cardano has rallied sharply in the past few days and has broken through the $0.50, $0.650, $0.750 and $0.800 resistance levels. The price formed a high at $0.8199 before correcting back and later tested the $0.6880 support level. It is currently rising and has broken the $0.740 resistance level. It has also climbed above the 50% Fibonacci retracement level of the downward move from the $0.8199 high to $0.6893 low.
Additionally, there was a break above a short term contracting triangle with resistance at $0.7550 on the hourly chart of the ADA/USD pair. Cardano is currently trading above the $0.740 level and the 100 hourly simple moving average.
Looking up, the price is likely to face resistance near the $0.7750 area. The first key resistance is around $0.7880, which is the 76.4% Fibonacci retracement level of the downward move from the $0.8199 high to $0.6893 low. Above that, the key resistance is likely to be $0.8180.
If the price closes above the $0.8180 resistance, the price is expected to start a strong rebound that may lead to the $0.8800 area and if it continues to rise, it may touch $0.950.
Regarding support for price dips: If the Cardano price fails to break through the $0.7880 resistance level, it is likely to fall again. On the downside, the immediate support is near $0.750 and the next major support is near $0.740. Once it falls below $0.740, it may further test $0.6880. The next major support is near $0.600, where the bulls may show strength.
From the technical indicators point of view:
Hourly MACD: The MACD for ADA/USD is gradually gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for ADA/USD is currently above the 50 level.
The main support levels are $0.7400 and $0.7200, while the main resistance levels are $0.7880 and $0.8180.
