Cardano (ADA) – The Road to Recovery: Can It Drive a Sturdy Rally?

Cardano price has found support near the $0.3050 level. ADA is currently rebounding higher and could seek further gains above the resistance at $0.3360.

ADA price started a rebound from the USD 0.3050 level.
The price is holding above $0.320 and the 100-hour elementary moving average.
On the hourly chart of the ADA/USD currency pair, there was a breakout of a key downtrend line with resistance at $0.3245 (data source: Kraken).
The pair could continue to rally if it holds above the support zone at USD 0.3200.

Cardano price shows signs of steady recovery

After a large drop, Cardano found support above the $0.30 zone. A low formed at $0.3050, and the price is now trying a rebound wave, similar to Bitcoin and Ethereum.

The price rose above the resistance levels at $0.3200 and $0.3220. There was a move above the 23.6% Fibonacci retracement level of the downward move from the $0.3673 high to $0.3050 low. Moreover, there was a break above the key bearish trendline with resistance at $0.3245 on the hourly chart of the ADA/USD pair.

Cardano price is currently trading above $0.4220 and the 100-hour elementary moving average. On the other hand, the price could encounter resistance near the $0.330 zone. The first resistance is located near $0.3360 or the 50% Fibonacci retracement level of the downward movement from the $0.3673 peak to $0.3050 trough.

The next key resistance could be $0.3450. If the close is above the $0.3450 resistance, the price could start a robust rally. In this case, the price could rise towards the $0.3680 region. Any further gains could require a move towards $0.400.

Another ADA drop?

If Cardano price fails to break above the $0.3360 resistance level, another decline could begin. Immediate support on the downside is near the $0.320 level.

The next major support is near the $0.3120 level. A break below the $0.3120 level could open the door to a test of the $0.3050 level. The next major support is near the $0.3000 level where the 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 0.3200 and USD 0.3050.

Major resistance levels – USD 0.3360 and USD 0.3450.