Cardano price has started to rise steadily above the resistance level of $0.3850. ADA now expects a close above $0.40, which would allow it to gain bullish momentum.

• ADA price started a modern boost and exceeded USD 0.3880.
• The price is holding above $0.390 and the 100-hour plain moving average.
• On the hourly chart of the ADA/USD currency pair, a key uptrend line is forming with support at USD 0.3935 (data source: Kraken).
• The pair may gain on the upside momentum if it closes above the USD 0.40 zone.

Cardano price is heading towards steady growth

Over the past few sessions, Cardano has started a decent rally from the support zone at $0.3350. ADA has risen above the resistance levels at $0.350 and $0.3650, similar to Bitcoin and Ethereum.

It even broke the resistance at $0.3880 and tested the $0.4050. A high formed at $0.4047 and the price is currently consolidating gains. There was a move below the support levels of $0.400 and $0.3980. The price tested the 23.6% Fibonacci retracement level of the upside from the swing low of $0.3577 to the high of $0.4047.

ADA price is now trading above $0.380 and the 100-hour plain moving average. A key bullish trendline is also forming on the hourly chart of the ADA/USD pair with support at $0.3935.

If there is another move up, the price may encounter resistance near the $0.400 zone. The first resistance is near $0.4050. The next key resistance could be $0.4250. If the close is above the $0.4250 resistance, the price could start a forceful rally. In the given case, the price could rise towards the $0.450 area. Any further gains may require a move towards $0.4650.

Downward correction in ADA?

If Cardano price fails to break above the $0.400 resistance level, it could start a downward correction. Immediate support on the downside is located near the $0.3960 level and the trendline.

The next major support is near the $0.3810 level and the 50% Fibonacci retracement level of the upside from the $0.3577 swing low to the $0.4047 high. A break below the $0.3810 level could open the door to a test of the $0.3750 level. The next major support is near the $0.350 level.

Technical indicators

Hourly MACD – MACD for the ADA/USD pair is gaining momentum in the growth zone.

Hourly RSI (Relative Strength Index) – The RSI for the ADA/USD pair is currently above the 50 level.

Major support levels – USD 0.3960 and USD 0.3810.

Major resistance levels – USD 0.4000 and USD 0.4050.