Cardano (ADA) Price Analysis: Bullish Breakout Above $0.42 Likely

Cardano price is holding gains above $0.3800 against the US Dollar, while bitcoin is consolidating. ADA price is likely to accelerate higher above $0.4200 and $0.4500.

Cardano Price Analysis

Cardano price remained well bid above the main $0.3000 support zone against the US Dollar. The ADA/USD pair also formed a strong support base near $0.3100 before starting a steady increase.

The last swing low was formed near $0.3326 before the price surged higher. It broke the $0.3500 and $0.3800 resistance levels. It even broke the $0.4000 barrier and settled well above the 55 simple moving average (4-hours).

Moreover, there was a break above a crucial contracting triangle with resistance near $0.3600 on the 4-hours chart. It traded as high as $0.4311 and it is currently correcting gains. It already spiked below the $0.4100 support level.

There was also a break below the 23.6% Fib retracement level of the recent upward move from the $0.3326 swing low to $0.4311 high. However, the price remained well bid above the $0.3900 and $0.3880 levels.

It seems like there is a strong support forming near the $0.3880 level (the last breakout zone). The next major support is near the $0.3820 level. It is close to the 50% Fib retracement level of the recent upward move from the $0.3326 swing low to $0.4311 high.

Any more losses could lead the price towards the $0.3500 support level and the 55 simple moving average (4-hours). Conversely, there are chances of more gains above the $0.4200 and $0.4300 resistance levels. The next major resistance could be near the $0.4500 level.

Cardano (ADA) Price

The chart indicates that ADA price is clearly trading nicely above $0.3880 and the 55 simple moving average (4-hours). Overall, the price is likely to continue high above $0.4200 as long as it is above the $0.3880 support in the near term.

Technical Indicators

4 hours MACD – The MACD for ADA/USD is losing pace in the bullish zone.

4 hours RSI – The RSI for ADA/USD is currently well above the 70 level.

Key Support Levels – $0.3880 and $0.3820.

Key Resistance Levels – $0.4200 and $0.4500.

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