Key Takeaways:
Cardano (ADA) price rallied over 100% and tested the $1.135 resistance zone. It broke a major bearish trend line with resistance at $0.5450 on the weekly chart. The price could continue to rise if it clears the $0.1350 resistance zone.Cardano (ADA) is consolidating gains near the $1.00 level. The bulls must protect the $0.80 support to start a fresh surge in the near term.
Cardano Price Faces A Hurdle
In the last technical analysis, we saw a strong surge in ADA price from the $0.400 zone. It broke a major bearish trend line with resistance at $0.5450 on the weekly chart. The bulls were able to pump the price above the $0.80 and $1.00 resistance levels.
The price even cleared the 1.236 Fib extension level of the downward move from the $0.8080 swing high to the $0.2770 low. Cardano is now trading well above the $0.8080 pivot level and the 50-week simple moving average (blue).
Cardano price weekly price chart | Source: ADAUSD on TradingView.comADA price tested the $1.135 resistance zone. It coincides with the 1.618 Fib extension level of the downward move from the $0.8080 swing high to the $0.2770 low.
The price is now correcting some gains like Bitcoin and trading near the $1.00 zone. If there is a fresh increase, the price could face resistance near the $1.050 level. The main hurdle is still at $1.135. A successful close above the $1.1350 resistance zone could set the tone for more gains.
The first major resistance on the upside is near the $1.20 level. The next major resistance is near the $1.280 level. A weekly close above the $1.280 resistance could send the price toward the $1.40 resistance. Any more gains might open the doors for a move toward the $1.65 level.
Recently, Cardano shared community discussions on the drafts of the constitution, paving the way for the upcoming ratification process.
Major Pullback In ADA?
If there is no move above $1.050 or $1.1350, ADA price could correct lower. Immediate support is near the $0.9320 level. The first major support is near the $0.8080 level.
If Cardano closes below the $0.8080 support, it might spark bearish moves. The next major support is near the $0.650 level, below which there is a risk of a drop toward $0.550. Any more losses might increase selling pressure and send the price toward $0.500 and the 50-week simple moving average (blue).
Overall, ADA is consolidating gains above the $0.8080 pivot level. Cardano could start a fresh surge if it clears the $1.050 and $1.1350 resistance levels in the coming sessions.
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