Cardano Price Analysis - ADA Surges 15% To Create Fresh 4-Month High - Can We Head Above $0.056?

What has been going on?

Taking a look at the daily chart above, we can see that Cardano bounced from support at $0.032 in December 2019 which kicked off the recent impressive bull run. As the new decade started, Cardano broke above a 6-month old descending trend line as it smashed above the $0.037 level. 

It quickly rose higher, breaking above the 100-days EMA and reaching resistance at the 200-days EMA by the middle of January 2020. Cardano struggled at this level of resistance for around a week, however, the latest price surge has now allowed Cardano to break above the 200-days EMA as it climbs higher. 

After breaking the 200-days EMA, ADA went on to rise above $0.05 and head into resistance at $0.053 which is provided by a short term 1.414 Fibonacci Extension level. The bullish surge has stalled at this level and has caused ADA to drop ever so slightly. 

Cardano price short term prediction: BULLISH

Cardano is most certainly in a bullish trend, especially after breaking above the 200-days EMA. The cryptocurrency would have to drop back beneath the 200-days EMA to turn neutral, with a further drop beneath $0.040 (100-days EMA) turning the market bearish.

If ADA does start to drop, we can expect the first level of strong support to be located at $0.05. Beneath this, additional support lies at $0.046 (200-days EMA), $0.045 (short term .382 Fib Retracement), $0.042 (.5 Fib Retracement), and $0.04 (.618 Fib Retracement and 100-days EMA).

Where Is The Resistance Toward The Upside?

On the other hand, if the bulls continue to press higher, the first level of resistance to break is located at $0.053 (1.414 Fib Extension). Above this, resistance lies at $0.056 (1.618 Fib Extension) and $0.0568 (bearish .382 Fib Retracement). If the buyers can continue to push ADA above $0.060, higher resistance lies at $0.061, $0.0645, and $0.070.

What Are The Technical Indicators Showing?

The RSI is well above the 50 level which shows that the bulls are in strong control over the market momentum. However, it has reached overbought conditions which could indicate that the buyers may be a little overextended. Nevertheless, the Stochastic RSI recently produced a bullish crossover signal which should help the bulls to continue higher.

Previous ADA price analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of Cardano: