Categories: News
| On
2023-11-20 9:08 AM

Cardano Eyes Major Rally, Tests Key Resistance at $0.388

By Nonhlanhla

Cardano (ADA), a key player in the cryptocurrency market, is gaining momentum from the $0.350 support level (approximately ZAR 6.40). A further rally could be in the cards if ADA surpasses the crucial resistance levels of $0.388 (about ZAR 7.10) and $0.395 (approximately ZAR 7.22).

Cardano’s Price Movements and Potential Rally

After a steady uptrend, Cardano saw a correction from the $0.4090 zone (approximately ZAR 7.48). The price dipped below both the $0.395 (about ZAR 7.22) and $0.388 (approximately ZAR 7.10) support levels. However, ADA found strong support near the $0.350 mark (around ZAR 6.40), forming a low near $0.3494 (approximately ZAR 6.39).

The price has since recovered, breaking above the $0.365 (about ZAR 6.67) and $0.375 (approximately ZAR 6.86) resistance levels. ADA climbed above the 50% Fib retracement level of the downward move from the $0.4090 swing high (around ZAR 7.48) to the $0.3494 low (approximately ZAR 6.39). Currently, ADA is trading above $0.375 (about ZAR 6.86) and the 100 simple moving average (4 hours). A key bullish trend line is also providing support near $0.370 (approximately ZAR 6.77) on the 4-hour chart.

Looking ahead, the immediate resistance for ADA is at the $0.3880 zone (around ZAR 7.10) or the 61.8% Fib retracement level of the downward move. The first significant resistance is near $0.395 (about ZAR 7.22), with the next key resistance potentially at $0.400 (approximately ZAR 7.31). A close above the $0.400 resistance (around ZAR 7.31) could extend ADA’s rally, possibly pushing the price toward the $0.420 region (approximately ZAR 7.68). Further gains could lead ADA to approach $0.450 (about ZAR 8.23).

Support Levels and Downside Risks

If ADA fails to clear the $0.388 resistance level (about ZAR 7.10), it may face a downward correction. The immediate support is found near the $0.370 level (approximately ZAR 6.77) and the trend line.

The next major support is near the $0.365 mark (around ZAR 6.67) and the 100 hourly SMA. A break below this level could lead to a test of the $0.350 support (approximately ZAR 6.40). The next major support lies near the $0.335 level (about ZAR 6.13).

For South African investors, ADA’s price dynamics offer valuable insights into the cryptocurrency market’s trends and potential investment opportunities in the evolving landscape of digital currencies.

Join Our Newsletter
Subscribe to our newsletter and stay updated.

Sponsored

Start trading with a free $30 bonus

Unleash your trading potential with XM—your gateway to the electric world of financial markets! Get a staggering $30 trading bonus right off the bat, with no deposit required. Dive into a sea of opportunities with access to over 1000 instruments on the most cutting-edge XM platforms. Trade with zest, at your own pace, anytime, anywhere. Don't wait, your trading journey begins now! Click here to ignite your trading spirit!

Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za