ADA could see bullish moves if it breaks this resistance

Cardano’s price is currently trying to recover and rise above $0.375. If it manages to settle above the resistance zone of $0.3850, ADA could experience bullish momentum.

  • The price of ADA is gradually increasing from the $0.360 zone against the US dollar.
  • It is currently trading above $0.370 and the 100 simple moving average (4 hours).
  • On the 4-hour chart of the ADA/USD pair (data source from Kraken), there was a break above a critical bearish trend line with resistance near $0.369.
  • If it manages to settle above the resistance zone of $0.3850, the pair could experience a decent increase.

Cardano’s ADA Price Attempts Recovery

Last week, Cardano’s price dropped towards the critical support zone of $0.354. However, the bulls managed to prevent a significant downside break below $0.3540.

The price then formed a low near $0.3536 and began a recovery wave. It moved above the resistance levels of $0.365 and $0.375. Also, there was a break above a key bearish trend line with resistance near $0.369 on the 4-hour chart of the ADA/USD pair.

The price is up by 3% and showing a few positive signs, similar to Bitcoin and Ethereum. However, the bears are now protecting more gains above the resistance of $0.3850. A high has been formed near $0.3850, and the price is consolidating gains. ADA’s price is currently trading above $0.370 and the 100 simple moving average (4 hours). It might soon test the 23.6% Fib retracement level of the recent wave from the $0.3536 swing low to the $0.3850 high.

Source: ADAUSD on TradingView.com

On the upside, the immediate resistance is near the $0.385 zone. The next significant resistance is forming near the $0.396 zone. If it manages to break above the resistance levels of $0.385 and $0.396, the price could experience a decent increase. In that case, the price could even surpass the resistance zone of $0.420. The next critical resistance might be $0.432, above which it could test $0.45.

Fresh Decline in ADA?

If Cardano’s price fails to climb above the resistance levels of $0.385 and $0.396, it could start to decline again. The immediate support on the downside is near the $0.375 level.

The next significant support is near the $0.368 level or the 50% Fib retracement level of the recent wave from the $0.3536 swing low to the $0.3850 high. A downside break below the $0.368 level could open the doors for a fresh decline towards $0.354. The next significant support is near the $0.332 level.

Technical Indicators

The 4-hour MACD for ADA/USD is losing momentum in the bullish zone. The RSI for ADA/USD is now above the 50 levels.

Major Support Levels – $0.375, $0.368, and $0.354.

Major Resistance Levels – $0.385, $0.396, and $0.420.