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Cardano Shows Signs of Potential Breakout as Market Indicators Align

Cardano Shows Signs of Potential Breakout as Market Indicators Align

Nov, 28 2024 6:13
Cardano Shows Signs of Potential Breakout as Market Indicators Align

Cardano has entered a consolidation phase, maintaining gains around the $1.00 zone. The cryptocurrency shows potential for an upward move past the $1.050 mark.

Recently, ADA experienced growth from the $0.8800 zone. Trading above $0.950 and the 100-hour simple moving average marks this uptrend. A notable bearish trend line with resistance at $1.020 is evident on the ADA/USD hourly chart, sourced from Kraken. Clearing the $1.050 resistance could trigger further ascent.

In recent days, Cardano breached the $0.850 resistance, aligning with Bitcoin and Ethereum's positive performance. The cryptocurrency surpassed resistance at $0.880 and $0.9250. The price exceeded the 50% Fibonacci retracement level of its decline from the $1.150 swing high to $0.8696 low, reaching beyond $1.00. Nonetheless, resistance remains near $1.050, accompanied by a bearish trend line. This aligns with the 61.8% Fib retracement of the prior downtrend. Cardano currently trades above $0.950 and its 100-hour simple moving average.

Upward momentum could be hindered by resistance near $1.020. The primary challenge lies at $1.050, followed by significant resistance at $1.0840. Surpassing this could propel ADA towards a robust rally, targeting the $1.150 region. Continued gains may push it further, potentially reaching $1.20.

Looking at support levels, failing to breach the $1.050 mark might lead Cardano into decline. Immediate support is found near $0.9650. Further decline could test $0.9350, potentially opening a path to $0.880. The $0.8450 level may see a bullish response if challenged.

Technical Indicators:

  • The hourly MACD for ADA/USD is gaining positive momentum.
  • The hourly RSI has risen above the 50 mark.
  • Major support levels stand at $0.9650 and $0.9350.
  • Significant resistance levels are positioned at $1.0200 and $1.0500.
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