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Cardano (ADA) Moves Above Range High — Do Further Gains Await?

2 mins
Updated by Kyle Baird
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In Brief

  • The ADA price has moved above a crucial resistance area at 535 satoshis.
  • The price is following a short-term ascending support line.
  • There is resistance at $0.057 and support at $0.042.
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The Cardano (ADA) price has been increasing at an accelerated rate since April 16, at one point having moved upwards by 85% in its USD pair and 35% in BTC value.
However, ADA/BTC reached a high on April 28 and has been decreasing since. The USD pair reached a top two days later. Bitcoin and altcoin trader BillGK_Crypto tweeted an ADA/BTC chart, showing that the price has reached a significant resistance level and predicted a price decrease.
ADA Comparison
Chart courtesy of Trading View
In order to make his argument, he stated that:
Hit meaty weekly resistance – Divergence across other major $alts showing weakness (saw this as ADA had more to ‘give back’). – LTF sign to short came in after breakdown & retest on daily open yesterday, pulled the trigger as planned with
In this article, we will take a closer look at the ADA price movement in order to determine if the price will continue increasing towards new highs or if the upward move is likely finished.

Cardano Trajectory

The main resistance area for ADA is found at 535 satoshis. This area has acted as the range high for the price since August 2019. After breaking out and reaching a high of 623 satoshis, ADA has decreased and validated the area as support. As long as it stays above, its price movement is considered bullish. In addition, a bullish cross is in the process of transpiring between the 50 and 200-day moving averages (MA), supporting the hypothesis that the price will continue moving upwards.
ADA Long-Term Movement
Cardano Chart By Trading View

Ascending Support Line

In the short-term, the ADA price is following an ascending support line since April 16. The price bounced on this line for the fourth time yesterday. This is a level that also coincides with the 0.5 Fib level of the entire upward move. Furthermore, the RSI was oversold, and bounced upwards above 50 shortly after, a sign that the price has begun a bullish trend. Therefore, the ADA price is expected to increase until it reaches at least 620 satoshis. As long as the price is trading above this ascending support line and the previously mentioned 535 satoshi support, the price movement for ADA is considered bullish.
ADA Short-Term Ascending Support
Cardano Chart By Trading View

ADA/USD

The ADA/USD pair looks less bullish than its BTC counterpart. The price has reached a major resistance level at $0.057, failed to break out, and created a bearish candlestick with very significant volume. Since it began its upward move on April 16, the ADA price has not retraced at all. Therefore, the price is expected to decrease towards the closest support level at $0.043.
ADA Price Movement
Cardano Chart By Trading View
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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