One of the popular altcoins of 2021, Cardano (ADA), is currently trading significantly below its $3 peak level. Particularly, ADA investors who entered at levels above $0.7 have been waiting for a while. So, what levels should be watched for the cryptocurrency ADA in the coming period? Let’s take a look at the details.
These Levels Should Be Watched for Cardano (ADA)
The altcoin Cardano (ADA) has been exhibiting a notably attractive performance recently. The cryptocurrency is gaining momentum above the $0.635 resistance area, which is drawing investors’ attention. Specifically, ADA’s consolidation of gains and targeting further increases above the $0.70 resistance is creating a positive sentiment in the market.
According to current data, the ADA price is trading above $0.640 and is above the 100 simple moving average on the 4-hour chart. On the ADA/USD pair’s 4-hour chart, a significant upward trend line is forming with support at $0.6350. This indicates that the bullish trend is still in effect.
What Caused the Increase?
The recent price increase of the cryptocurrency Cardano is due to the formation of a solid base above the $0.5650 level in the past. Subsequently, the ADA price captured a positive momentum by breaking above the $0.600 and $0.6220 resistance levels. However, despite breaking above the $0.650 resistance area, bears became active near the $0.700 resistance zone.
The highest level was around $0.7084, followed by a downward correction in the price. However, this correction did not prevent altcoin ADA from trading above $0.640 and the 100 simple moving average. Therefore, looking at the technical indicators, it is seen that for ADA/USD, the RSI is above the 50 level, and the MACD is losing momentum in the bullish zone.
Which Levels Should Be Monitored?
In the upcoming period, it is expected that the altcoin ADA price will continue to hold near the $0.6350 support level. However, in the event of a downward move, the $0.6220 support level stands out as an important breakpoint. Below this level, a test of $0.600 could be anticipated.
On the other hand, if the altcoin ADA price continues its ascent, the $0.6750 resistance level is said to play a significant role. Overcoming this resistance level could potentially target the $0.6920 and $0.7000 resistance levels.
