ADA Price Prediction – Can Cardano Bulls Overcome This Key Hurdle?
Cardano (ADA) is showing signs of a potential bullish momentum as it attempts to break above the key resistance level of $0.4500. The price of ADA has slowly been rising and is currently trading below $0.480 and the 100 simple moving average (4 hours). However, there was a recent break above a key bearish trend line with resistance at $0.4580, which could indicate a positive shift in market sentiment.
In the past few days, Cardano has experienced a recovery wave, similar to Bitcoin and Ethereum. The price broke through the $0.4350 and $0.4420 levels, entering a short-term bullish zone. Additionally, there was a breakout above the 23.6% Fibonacci retracement level of the downward move from the $0.5227 swing high to the $0.4180 low. These developments suggest that ADA may have the potential to continue its upward trajectory.
Currently, Cardano is facing immediate resistance at the $0.4650 zone and the 100 simple moving average (4 hours). The first significant resistance level to watch out for is around $0.470 or the 50% Fibonacci retracement level. If the price manages to surpass this level, it could signal the start of a strong rally, with the next key resistance level being $0.4980. In such a scenario, ADA could potentially rise towards the $0.5250 region and even further to $0.5650.
However, if Cardano fails to overcome the $0.470 resistance level and the 100 simple moving average (4 hours), it may experience another decline. Immediate support on the downside is expected at the $0.450 level, followed by the major support levels at $0.4350 and $0.4180. A break below $0.4350 could open the door for a test of the $0.4180 level, with the next major support at $0.3880.
The MACD for ADA/USD on the 4-hour chart is currently showing a loss of momentum in the bearish zone. On the other hand, the RSI (Relative Strength Index) is above the 50 level, indicating a positive trend in the market.
In conclusion, while Cardano faces a crucial hurdle at $0.470 and the 100 simple moving average (4 hours), there is potential for a bullish breakout. Traders and investors should closely monitor the price action and consider conducting their own research before making any investment decisions.