Cardano (ADA) Momentum Builds: Is the Rally Set to Continue?
More from the Author Dennis Gatheca
Cardano (ADA) is showing strong bullish momentum, with its price holding above $1.00 and technical indicators suggesting further potential for growth if it clears resistance levels at $1.1120 and $1.1150.
However, a failure to break these levels could lead to a decline, with key support zones at $1.080 and $1.050.
Cardano (ADA) has been making impressive strides recently, as its price surged above the crucial $1.00 level, signaling a potential upward trend. Despite facing minor corrections, ADA remains poised for further growth, with technical indicators suggesting that there is more room for the rally to run.
Cardano’s Strong Momentum
Following a solid foundation above the $0.80 mark, Cardano initiated a fresh surge, outperforming major cryptocurrencies like Bitcoin and Ethereum. The price swiftly climbed past the $0.90 and $1.00 thresholds, and even peaked above $1.120. Although a slight pullback occurred, ADA has managed to maintain a strong position above its 23.6% Fib retracement level, indicating that the bullish momentum is still intact.
Currently, Cardano is trading above the $1.00 zone and the 100-hourly simple moving average, reinforcing the positive outlook. A short-term rising channel is forming on the hourly chart, with support at $1.075. This technical pattern suggests that ADA could experience further upward movement if it clears key resistance levels.
Key Resistance Levels to Watch
As the price consolidates, ADA is encountering resistance near the $1.10 zone. The immediate hurdle lies at $1.1120, followed by the significant $1.1150 resistance level. If Cardano manages to break through these levels and closes above $1.1150, it could trigger a strong rally, potentially propelling the price toward the $1.20 region. Any sustained momentum beyond that could even push ADA to the $1.250 level in the near term.
Potential Downside Risks
While the overall trend appears bullish, there are downside risks to consider. If ADA fails to surpass the $1.1120 resistance, it could face a decline. The immediate support lies at the $1.080 mark, with the next major support at $1.050. A break below $1.050 could open the door for further declines, potentially testing the $0.975 level or the 50% Fib retracement of the recent surge.
Technical Indicators Signal Strength
Technical indicators are reinforcing the bullish outlook for ADA. The MACD is gaining momentum in the positive zone, suggesting that the uptrend could continue. Furthermore, the Relative Strength Index (RSI) remains above the 50 level, signaling that the buying pressure outweighs the selling.
Conclusion: A Bullish Outlook for Cardano
Cardano’s recent price action indicates that the cryptocurrency is in the midst of a strong rally, with significant potential for further gains. As long as it maintains support above the $1.00 level and breaks through resistance levels, ADA could continue its upward trajectory in the coming weeks. However, traders should remain cautious of potential corrections and watch for key support levels to hold.
The post Cardano (ADA) Momentum Builds: Is the Rally Set to Continue? appeared first on Crypto News Focus.
