Cardano (ADA) is making a promising recovery above the $0.25 level against the US Dollar, indicating a potential bullish trend. The price is currently trading below $0.288 and the 55 simple moving average (4 hours), but recent developments suggest an upward move might be on the horizon.
On the 4-hour chart provided by Coinbase, a major bearish trend line with resistance near $0.260 was broken, signalling a positive shift in market sentiment. ADA price could gain further bullish momentum if it manages to surpass the $0.265 and $0.288 levels, presenting an opportunity for investors.
Similar to Bitcoin, Cardano’s price has been on an upward trajectory above $0.25 against the US Dollar. The clearing of the $0.265 resistance would bolster the chances of a continued recovery. It’s worth noting that earlier this month, Cardano experienced a significant decline from levels well above $0.320, leading to a bearish zone below the $0.30 and $0.288 support levels.
During this downward movement, ADA price even dropped below $0.25, reaching a low point of around $0.230. However, the market has since started correcting its losses, as evidenced by the climb above the $0.250 and $0.255 resistance levels. The price has also surpassed the 23.6% Fibonacci retracement level, measured from the swing high of $0.3821 to the low of $0.2300.
Moreover, there has been a notable breakthrough of a major bearish trend line with resistance near $0.260 on the 4-hour chart. Although ADA price is currently trading below $0.288 and the 55 simple moving average (4 hours), the prospects of a bullish surge remain intact.
In terms of immediate resistance, the $0.265 zone stands out, followed by the more significant obstacle at $0.288. A clear move above this resistance level would likely trigger a sustained increase in price. In such a scenario, the price may target the $0.300 resistance or the 50% Fibonacci retracement level, which lies between the swing high of $0.3821 and the low of $0.2300.
Conversely, immediate support is situated around the $0.252 level, with the next major support seen near $0.250. If the price were to drop below $0.250, it could potentially reach the $0.230 level. Subsequent losses might drive the price further down to the $0.205 support level, and if breached, the bears could set their sights on testing the $0.200 mark.
The chart analysis indicates that ADA price is currently trading below $0.288 and the 55 simple moving average (4 hours). However, there is still potential for bullish momentum if the price manages to overcome the resistance levels at $0.265 and $0.288.
Taking a look at the indicators, the 4-hour MACD for ADA/USD suggests a slowdown in the bullish zone, while the 4-hour RSI for the same pair is currently below the 50 levels.
To summarize, ADA price is showing signs of recovery, with potential for bullish momentum upon surpassing the resistance levels at $0.265 and $0.288. Immediate support is found at $0.252, followed by $0.230, while key resistance levels lie at $0.265 and $0.288.
