Cardano price has started a clear rally above the resistance at $0.3620. ADA is currently showing positive signals and may continue to rise towards $0.420.

• ADA price started a rebound from the USD 0.3420 level.
• The price is holding above $0.380 and the 100-hour straightforward moving average.
• On the hourly chart of the ADA/USD currency pair, a key uptrend line is forming with support at USD 0.3810 (data source: Kraken).
• The pair could continue to rally if it holds above the support zone at USD 0.3800.

The price of Cardano is starting to rise steadily

After forming a base above the $0.3420 level, Cardano started a decent rally. There was a decent move above the $0.3550 and $0.3650 resistance levels like Bitcoin and Ethereum.

Bulls even pushed the price above the resistance of $0.380. A top was formed at $0.3938 and the price is currently consolidating gains. It is above the 23.6% Fibonacci retracement level of the upside from the swing low of $0.3432 to the high of $0.3938.

Cardano price is now trading above $0.380 and the 100-hour straightforward moving average. There is also a key bullish trendline forming with support at $0.3810 on the hourly chart of the ADA/USD pair.

On the other hand, the price could face resistance near the $0.3900 zone. The first resistance is near $0.3940. The next key resistance could be $0.4200. If the close occurs above the $0.4200 resistance, the price could start a robust rally. In the given case, the price could rise towards the $0.450 area. Any further gains may require a move towards $0.500.

Does ADA support DIP files?

If Cardano price fails to break above the $0.3900 resistance level, another decline could begin. Immediate support on the downside is located near the $0.380 level and the trendline.

The next major support is near the $0.3650 level or the 50% Fibonacci retracement level of the upside move from the $0.3432 swing low to the $0.3938 high. A break below the $0.3650 level could open the door to a test of the $0.3550 level. The next major support is near the $0.3420 level, where bulls could enter.

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 0.3800 and USD 0.3650.

Major resistance levels – USD 0.3900 and USD 0.4200.