Cardano has demonstrated a significant upward movement, breaking above the resistance level of $0.3620. Currently, the cryptocurrency displays positive indicators, suggesting that it may continue to ascend, potentially reaching $0.420 in the near future.
Beginning its recovery from the $0.3420 level, Cardano’s price has shown signs of resilience. It has successfully traded above $0.380 and surpassed the 100-hourly simple moving average. A crucial bullish trend line has also formed, with support located at $0.3810 on the hourly chart for the ADA/USD trading pair. As long as Cardano maintains stability above the $0.3800 support zone, it could continue its upward trajectory.
Following the establishment of a foundation above $0.3420, Cardano made notable progress by surpassing several key resistance points. The price moved past $0.3550 and $0.3650, similar to movements observed in Bitcoin and Ethereum . The bulls have managed to propel the price even higher, forming a peak at $0.3938 before the asset entered a phase of consolidation. Presently, the value is above the 23.6% Fibonacci retracement level of the upswing from $0.3432 to $0.3938.
Should the price test upward resistance, the first hurdle will be around $0.3900, followed closely by $0.3940 and the critical threshold at $0.4200. A successful closure above the $0.4200 level could trigger a more pronounced rally, potentially leading the price toward $0.450 and beyond.
Conversely, if Cardano fails to break past the $0.3900 resistance, it may initiate a downward adjustment. Immediate support levels can be found at $0.380 and the trend line, with further support near $0.3650, representing the 50% Fibonacci retracement. A significant decline below the $0.3650 level could pave the way for a test at $0.3550, with further supportive measures around $0.3420 likely to reinvigorate the buying interest from bulls.
Technical indicators currently reflect bullish momentum, with the MACD showing gains within a favorable zone and the Relative Strength Index above 50. The focus remains on the major support levels at $0.3800 and $0.3650, along with the resistance levels at $0.3900 and $0.4200.
