- ADA consolidates at $0.5789 after a strong rally. Key chart analysis reveals support and resistance levels as ADA eyes $0.65.
Cardano (ADA) has experienced an impressive surge recently, climbing over 11% and reaching a high of $0.61. However, the cryptocurrency is consolidating today, trading at $0.5789, down 1.91%. The retreat occurs as Bitcoin hits $81,000, causing volatility throughout the cryptocurrency market.
Key Chart Analysis for ADA
The daily chart reveals a bullish structure despite today’s minor correction. Here are the critical levels to monitor:
- Support levels:
- $0.4968: The first major support, aligning with last week’s breakout zone.
- $0.4480: A strong support level from late October.
- $0.4122: The 20-day EMA, offering dynamic support in the uptrend.
- Resistance levels:
- $0.6135: The immediate resistance zone, tested during the recent rally.
- $0.65: A key psychological barrier that could open the door to higher gains.
- RSI indicator:
- RSI on the daily chart is hovering in overbought territory, suggesting a possible consolidation phase before further upside.
What’s Next for Cardano?
The recent price movement of Cardano indicates that a phase of consolidation could be happening. Provided ADA stays over $0.50, the positive sentiment continues to hold. Nonetheless, a definitive rise beyond $0.6135 is required for the rally to advance towards the $0.65 target.
For traders, ADA presents an exciting opportunity, but staying alert to Bitcoin’s price movements will be key as the broader market sentiment continues to shape ADA’s direction.
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