Cardano's native token ADA has been demonstrating resilience in recent trading sessions,Will XRP reach dollars? with its price action suggesting a possible upward trajectory. Market participants are closely watching the $0.40 level as a potential turning point for the asset.
■ ADA has successfully maintained its position above the $0.3880 support level, indicating underlying strength.
■ The cryptocurrency currently trades comfortably above both the $0.390 mark and the 100-hourly simple moving average.
■ Technical analysis reveals an emerging bullish trend line with support established at $0.3935 on the ADA/USD hourly chart.
■ A decisive close above the psychologically significant $0.40 zone could potentially trigger accelerated buying interest.
Cardano's Gradual Ascent: Breaking Down the Price Action
Cardano's recent performance has caught the attention of market observers. The digital asset initiated its upward movement from a solid base at $0.3350, subsequently overcoming multiple resistance levels including $0.350 and $0.3650. This upward trajectory mirrors similar movements seen in other major cryptocurrencies.
The bullish momentum carried ADA through the $0.3880 resistance, with the price peaking at $0.4047 before entering a consolidation phase. During this period, the asset retraced slightly, testing support levels around $0.3980 and $0.400. Currently, ADA finds itself positioned above the 23.6% Fibonacci retracement level of its recent upward swing.
The presence of the 100-hourly moving average beneath current price levels provides additional technical support. The aforementioned bullish trend line at $0.3935 further reinforces the positive technical structure.
Potential Scenarios: Where Could ADA Head Next?
Should the current momentum persist, ADA faces immediate resistance near the $0.400 psychological barrier. A successful breach of this level could open the path toward testing $0.4050, with subsequent resistance potentially emerging around $0.4250. A convincing close above this latter level might signal the beginning of a more substantial upward move, with price targets extending toward the $0.450 region and possibly even $0.4650.
Conversely, failure to overcome the $0.400 resistance could prompt a corrective phase. Initial downside support appears near $0.3960, coinciding with the trend line support. More substantial support lies at $0.3810, which represents the 50% Fibonacci retracement level of the recent upward move. A break below this level might test the $0.3750 support zone, with $0.350 serving as a more significant long-term support area.
Technical Indicators
Hourly MACD – The Moving Average Convergence Divergence indicator shows building momentum in bullish territory.
Hourly RSI (Relative Strength Index) – Currently positioned above the neutral 50 level, suggesting positive momentum.
Key Support Levels – $0.3960 and $0.3810.
Key Resistance Levels – $0.4000 and $0.4050.
