Chartered: Cardano (ADA) Gives 20%, Why $ 0.70 Spark Can Make Fresh Growth
Cardno trades at a new multi-month high at $ 0.9860 before the price plummeted. The ADA declined more than 20%, but is likely to remain a good bid near the $ 0.7000 level.
- The ADA began a strong boom before climbing against the US dollar and climbed above $ 0.9000.
- The price is still trading above $ 0.7000 and above the 100 simple moving average (4-hour).
- On the 4-hour chart (data source from Bitfinex) of the ADA / USD pair there was a break below a major bullish trend line with support near $ 0.8800.
- The pair is likely to strengthen above $ 0.7000 before starting fresh growth in the near term.
Cardano (ADA) is doing fine
Over the past few days, Cardano’s price began a steady rise above the $ 0.7000 resistance. The ADA price also cleared the $ 0.8000 resistance and settled above the 100 simple moving average (4-hour).
Finally, there was a break above the $ 0.9000 level, but no test of the main $ 1.00 level. The price started a negative correction (similar to bitcoin) after setting a new multi-month high at $ 0.9860. There was a break below the $ 0.9000 and $ 0.8800 support levels.
There was also a break below a major bullish trend line with support near $ 0.8800 on the 4-hour chart of the ADA / USD pair. The pair also reached below the support level of $ 0.7200, but it continued to bid above $ 0.7000.
It is now trading above $ 0.7000 and above the 100 simple moving average (4-hour). A low is made near $ 0.6919 and the price is currently recovering. It climbed from $ 0.9860 high to $ 0.6919 low from the recent decline of 23.6% Fib retracement level.
Source: ADAUSD on TradingView.com
Conversely, a major resistance is formed near the $ 0.8500 level. There is also a connecting bearish trend line near $ 0.8500 on the same chart. The trend line coincides with the recent fall’s 50% fib retracement level from $ 0.9860 high to $ 0.6919 low.
A successful break and trend line above the $ 0.8500 resistance can trigger a fresh surge. The next major resistance sits at $ 0.9000.
If Cardano’s price fails to clear the $ 0.8400 and $ 0.8500 resistance levels, it may be less accurate. An initial support is near the $ 0.7200 level.
Key support is now approaching the $ 0.7000 level. A clear pause below the $ 0.7000 support area could push the price toward the 100 Simple Moving Average (4 hours) to $ 0.6000.
4-hour MACD – MACD for ADA / USD is gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for ADA / USD is currently below the 50 level.
Major support levels – $ 0.7200, $ 0.7000 and $ 0.6000.
Major resistance levels – $ 0.8400, $ 0.8500 and $ 0.9000.