• Cardano price is rising above $0.380 against the US Dollar, similar to Bitcoin.
• There was a break above a major bearish trend line with resistance near $0.3700 on the 4-hours chart (data feed via Coinbase).
• ADA price could rally if there is a clear move above the $0.385 resistance.
Cardano Price Analysis
Cardano (ADA) price is showing positive signs above the $0.3720 zone against the US Dollar, trading above $0.375 and the 55 simple moving average (4 hours). There was a break above a major bearish trend line with resistance near $0.3700 on the 4-hours chart (data feed via Coinbase). The bulls are now aiming for a move towards the $0.400 level, should they manage to clear the $0.385 resistance level.
This week, Cardano price started a steady increase above the $0.362 resistance zone against the US Dollar and gained pace for a move towards higher levels past the $0.370 and $0.375 levels. In addition, there was also a break above an important bearish trend line which had been in place since April 2021 at around $0.3700 on the 4-hours chart (data feed via Coinbase). This has allowed for further upside momentum as buyers managed to push prices beyond the key barrier of $ 0 .380 . However, gains were limited around this level as sellers stepped back in to take profits around this area before pulling prices back lower towards current levels just below 0$ .3850 mark .
On the upside, immediate resistance is seen near he 0$ .3850 zone while further gains could be seen if buyers manage to push prices over this area towards key hurdles around 0$ .3880 and 0$ .4000 marks respectively in order to open up doors for additional gains towards 0$ .4200 or even 0$ .4320 levels in short term periods of time should bullish momentum remain strong enough throughout this period of time.. Further losses beyond these two areas could then see ADA/USD prices dropping towards more significant support zones found at 0$ .3500 , 0$ .3300 and eventually even reaching down towards lows set at around 0$ ..3537 during late April 2021 timeframe..
On downside pulls , immediate support can be found at around 0$.378 mark which coincides with 23% Fibonacci retracement level of an upward move from lows set during late April 2021 timeframe up until highs reached recently just below 0$.3850 handle.. Additionally , next major support area can be identified at around 50% Fibonacci retracement level located slightly below mentioned immediate support area where prices have already been tested several times during last few days.. Should sellers remain aggressive enough here , we could potentially see ADA/USD pair dropping back down even further towards significant long term supports found at areas such asaround mentioned aforementioned low from late April 2021 but also possibly all way down to psychological round number handle of 1 dollar per one unit of ADA token depending how strong sellers are willing to defend mentioned psychological round number handle going forward..
Overall , it seems that Cardano has potential for some more gains going forward provided that buyers manage to keep prices afloat and away from mentioned support areas we discussed earlier in today’s analysis .. If so , we could potentially see more movement coming into play soon pushing ADA/USD pair up higher towards aforementioned resistances prior any pullbacks taking place .. On other hand however , failure to keep bulls afloat may lead us into yet another drop in direction of our previously discussed long term supports prior any sort of recovery taking place ..