Cardano price has started a consolidation phase near the $1.00 zone. ADA holds on to its gains and could aim for a further increase above $1,050.
- ADA price started a further increase from the $0.8800 area.
- The price is trading above $0.950 and the 100 hourly simple moving average.
- A key downtrend line is forming with resistance at $1.020 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair could begin a further rise if it breaks the $1.050 resistance zone.
Cardano Price Eyes Further Rise
Over the past few days, Cardano saw a further rise above the $0.850 resistance. ADA remained in a positive zone like Bitcoin and Ethereum. There was a move above the $0.880 and $0.9250 resistance levels.
The price broke above the 50% Fib retracement level of the downward move from the $1.150 high to $0.8696 low. It even crossed the $1.00 level. However, the bears are now active near the $1,050 area. There is also a key downtrend line forming with resistance at $1.020 on the hourly chart of the ADA/USD pair.
The trendline is near the 61.8% Fibonacci retracement level of the downward move from the $1.150 high to $0.8696 low. Cardano price is now trading above $0.950 and the 100 hourly simple moving average.
On the upside, the price may encounter resistance near the $1.020 area. The first resistance is near $1,050. The next key resistance could be $1.0840. If there is a close above the $1.0840 resistance, the price could begin a strong move higher. In the stated case, the price could increase towards the $1.1500 region. Any further gains could require a move towards $1.20.
Are dips supported in ADA?
If Cardano price fails to rise above the $1,050 resistance level, it could begin a further decline. Immediate downside support is near the $0.9650 level.
The next major support is near the $0.9350 level. A downside break below the $0.9350 level could open the door to a test of $0.880. The next major support is near the $0.8450 level where the bulls could emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Key support levels – $0.9650 and $0.9350.
Major resistance levels – $1.0200 and $1.0500.
