Cardano price started a recent rally above the $1.00 zone. ADA is strengthening and may target a fresh rise above the $1.1150 level.
- ADA price started a downside correction from the $1.1150 zone.
- The price is trading above $1.00 and the 100-hourly simple moving average.
- A short-term rising channel forms with support at $1.075 on the hourly chart of the ADA/USD pair (data source from Kraken).
- The pair may start another rally if it clears the $1.1150 resistance zone.
Cardano’s price starts a fresh rise
After forming a base above the $0.80 level, Cardano started a fresh rally, beating Bitcoin And ethereum. ADA rose above the $0.90 and $1.00 levels.
Bulls also pushed the price above $1.120. A high was made at $1.1156 and the price is now consolidating gains. There was a slight drop below $1.1120, but the price remained above the 23.6% Fib retracement level of the move up from the $0.8373 swing low to the $1.1156 high.
The Cardano price is now trading above $1.00 and the 100-hourly simple moving average. There is also a short-term rising channel with support at $1.075 on the hourly chart of the ADA/USD pair.
On the upside, the price may face resistance near the $1.10 zone. The first resistance is near $1.1120. The next major resistance could be $1.1150. If there is a close above the $1.1150 resistance, the price could start a strong rally. In the mentioned case, the price could move towards the $1.20 region. Any further gains could call for a move towards $1.250 in the near term.
Downside reform in the ADA?
If the Cardano price fails to climb above the $1.1120 resistance level, it could start another decline. Immediate support on the downside is near the $1.080 level.
The next major support is near the $1.050 level. A downside break below the $1.050 level could open the door for a test of $0.975 or an upside move from the $0.8373 swing low to the $1.1156 high at the 50% Fib retracement level. The next major support is near the $0.950 level where bulls may emerge.
Technical indicators
Hourly MACD – The MACD for ADA/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now above the 50 level.
Key support levels – $1.0800 and $1.050.
Key resistance levels – $1.1120 and $1.1150.
