Following a consistent uptrend, Cardano recently experienced a corrective pullback from the $0.4090 range, mirroring similar movements in Bitcoin and Ethereum. The decline breached key support levels at $0.395 and $0.388.
Nevertheless, bullish activity emerged around the $0.350 support zone, leading to the formation of a low at approximately $0.3494, and the current price trajectory is upward. Notably, there was a successful breach above resistance at $0.365 and $0.375, surpassing the 50% Fibonacci retracement level of the downward swing from the $0.4090 peak to the $0.3494 trough.
related: Cardano’s Rally: Analyst Forecasts $0.75 Surge in December
As of now, ADA is trading above $0.375 and is supported by the 100 simple moving average (4 hours). Additionally, a crucial bullish trend line is taking shape with support of around $0.370 on the 4-hour ADA/USD chart.
Looking at potential resistance levels, the immediate hurdle lies near $0.3880 or the 61.8% Fibonacci retracement level from the downward swing. The first resistance is at $0.395, followed by a significant hurdle at $0.400. A decisive close above the $0.400 mark could pave the way for an extended rally, targeting the $0.420 region. Further upward momentum may even drive the price towards $0.450.
However, in the scenario where Cardano struggles to breach the $0.388 resistance, a downside correction might ensue. Immediate support on the downside is anticipated near the $0.370 level and the established trend line. Subsequently, the $0.365 level and the 100 hourly SMA represent crucial support, with a break below $0.365 potentially leading to a test of $0.350. The subsequent major support rests at the $0.335 level.
Disclaimer. The information provided is not trading advice. bitfinder news holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.