Cardano price rallied recently and traded above the $0.1000 resistance. ADA corrected lower recently, but dips remain supported and the price is likely to bounce back above $0.0940.
- Cardano price corrected lower after testing the $0.1000 resistance area.
- There is a key bullish trend line in place with support at $0.0875 on the 2-hours chart.
- ADA is likely to climb higher once again as long as it is above the $0.0854 support area.
Trade Cardano at AvaTrade
Cardano Price Analysis (ADA to USD)
This week, we saw the start of a fresh rally in cardano price above the $0.0700 resistance level against the US dollar. ADA even surged more than 40% and traded above the $0.0850 and $0.0920 resistance levels.
Click to Enlarge Chart
Looking at the 2-hours chart of ADA/USD, the pair formed a strong support base near the $0.0700 level. Later, bulls took control and pushed the price above a crucial resistance at $0.0740 and the 25 simple moving average (2-hours).
It cleared the path for a solid upward move and the price surged above the 0.0850 and $0.0920 resistance levels. Intermediately, there was a support base formed near $0.0840 before the price tested the $0.1000 resistance area.
A swing high was formed at $0.1016 before the price started a downside correction. It traded below the $0.0935 support and the 23.6% Fib retracement level of the latest ride from the $0.0690 low to $0.1016 high.
However, the decline was protected by a major support near $0.0850 and the 25 simple moving average (2-hours). The 50% Fib retracement level of the latest ride from the $0.0690 low to $0.1016 high also acted as a solid support.
More importantly, there is a key bullish trend line in place with current support at $0.0875 on the same chart. If there is a break below the trend line, the price must hold the $0.0850 support area to remain in a positive zone.
If there is a downside break below $0.0850, the price might test the $0.0740 support. A similar pattern is observed for bitcoin and Ethereum, but bitcoin cash continues to outperform and it recently tested the $350.00 resistance (as discussed in yesterday’s analysis).
Overall, cardano price could bounce back above $0.0920 and $0.0935 in the coming sessions as long as ADA is above the $0.0875 and $0.0850 supports.
The market data is provided by TradingView, Binance.
The post Cardano (ADA) Price Prediction: Downside Thrust Before Fresh Rise? appeared first on Blockonomi.