Cardano’s price recently broke out of structure after trading in a wedge for months. The trend now looks bullish across major timeframes with no signs of weakness. A pullback should be expected if the price drops.
During last month’s recovery across the market, ADA surged through a vital resistance and further broke out of a descending wedge that formed in February. It pushed higher this week and tested the $0.33 level yesterday.
That price level held as a resistance on the hourly chart as buying pressure paused. However, the price remains strong on a daily as it gathers strength to take more highs. June’s breakdown level is the next resistance to watch for a test.
Should the price drop from the current trading level, ADA may pull back briefly before resuming buying. A broader pullback may serve as a retest of last month’s breakups.
If the wedge’s upper boundary provides support, we can expect a solid rebound. Rolling back in the descending wedge could lead to a bullish trap on a daily. But as it stands now, the trend is in favour of the bulls in the short term.
As there are no signs of weakness right now, it may keep rising until it reaches an exhaustion point on the current daily chart. In terms of gains, ADA has charted a 33% increase in the last three weeks.
ADA’s Key Levels to Watch
While facing a minor resistance at $0.33 over the past hours, the higher resistance levels to watch for a breakup are $0.35 and $0.38. Further push could bring the price to the test of $0.42.
Considering a pullback, the closest support level for a rebound lies at $0.30. If that support fails, the lower level to keep in mind is $0.27 while the $0.24 level stands as the last defence line for the bulls.
Key Resistance Levels: $0.35, $0.38, $0.42
Key Support Levels: $0.30, $0.27, $0.24
- Spot Price: $0.32
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.