Cardano (ADA) is looking to start a up-to-date rally above the $0.500 resistance zone. To start a decent upward move, ADA needs to stay above the $0.480 support.

• ADA price is trying to gain bullish momentum above the $0.50 zone.
• The price is holding above $0.480 and the 100-hour elementary moving average.
• A key bullish trendline is forming on the hourly chart of the ADA/USD pair with support near USD 0.480 (data source from Kraken).
• The pair may gain bullish momentum if it closes above $0.500.

Cardano price remains supported

Over the past few days, Cardano has started a recovery wave from the $0.4620 zone, but has lagged behind Bitcoin and Ethereum. ADA price broke through the USD 0.4750 and USD 0.480 levels to enter the short-term bullish zone.

The price even rose above USD 0.50, but did not continue to rise. The peak formed at USD 0.510 and has recently undergone a downward correction. The price fell below the support at $0.4980. The stock has fallen below the 23.6% Fib retracement level, the result of an upward move from a low of $0.4614 to a low of $0.510.

Cardano is currently trading above $0.480 and the 100-hour elementary moving average. A key uptrend line is also forming on the hourly chart of ADA/USD with support near USD 0.480. The trendline is near the 61.8% Fib retracement level, which is a sign of an upward move from the low of $0.4614 to the low of $0.510.

On the other hand, immediate resistance is located near the $0.4980 zone. The first resistance is near USD 0.510. The next key resistance could be the USD 0.5250 level. If there is a close above the resistance at $0.5250, the price could begin a mighty rally. In the given case, the price may enhance towards the USD 0.5450 region. Any further gains may require a move towards $0.5650.

Another ADA decline?

If Cardano price fails to break above the $0.4980 resistance level, another decline could begin. Immediate downside support is located near the $0.450 level.

The next significant support is near the $0.480 level. A downside break below the $0.480 level could open the door to a test at $0.4620. The next significant support is near the $0.450 level.

Technical indicators

Hourly MACD – MACD for ADA/USD is gaining momentum in a bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is currently below the 50 level.

Major support levels – $0.4850, $0.4800 and $0.4620.

Major resistance levels – $0.4980, $0.5100 and $0.5250.