Key Takeaways:
- ADA price is up over 18% and trading above $0.550.
- A crucial contracting triangle is forming with resistance at $0.596 on the daily chart.
- The price could continue to rally if it clears $0.596 and $0.600.
New Delhi(Coinchapter.com): Cardano (ADA) surges above the $0.550 resistance. The bulls seem to be in control, and they might aim for a move toward the $0.80 level.
Cardano Price Resumes Rally
After a major rally, ADA price failed to clear the $0.680 resistance. A multi-week high was formed near $0.6773 before there was a downside correction. Cardano traded below the $0.600 and $0.550 support levels, but the downsides were limited.
The bulls remained active near the $0.465 zone. A low was formed near $0.4651 and the price recently started a fresh increase, like Polkadot (DOT). There was a clear move above the $0.500 and $0.525 resistance levels.
ADA price also broke the 50% Fib retracement level of the downside correction from the $0.6773 swing high to the $0.4651 low. It is now showing a lot of positive signs above $0.550 and the 50-day simple moving average (blue).
Fundamentally, the crypto market got a strong boost after the long-awaited BTC spot ETFs were approved by the SEC. Bitcoin remained in a bullish zone above $46,000 and it lifted the market sentiment for many altcoins, including Cardano.
ADA is up over 15% in a day and trying to match Ethereum. The current price action suggests high chances of more upsides, with immediate resistance at $0.595.
There is also a crucial contracting triangle forming with resistance at $0.596 on the daily chart. The triangle resistance is close to the 61.8% Fib retracement level of the downside correction from the $0.6773 swing high to the $0.4651 low.
A close above the triangle resistance and then $0.600 could spark more bullish moves. The first key resistance could be near the $0.6773 high. If Cardano bulls remain in action, they could aim for a move toward the $0.745 resistance. Any more gains might send ADA toward the $0.800 level.
Downside Correction in ADA?
If there is no move above $0.600, ADA price could correct lower. Immediate support is near the $0.542 level. The first major support is near the 50-day simple moving average (blue) at $0.530.
The next major support is near the triangle zone at $0.515, below which there is a risk of a drop toward the $0.465 level. Any more losses might increase selling pressure and send Cardano toward $0.400.
Overall, ADA is gaining strength above the $0.550 level. If the bulls remain in action, Cardano could rally further toward the $0.680 level or $0.800. Conversely, the price could correct lower and revisit the $0.465 support zone.
