Cardano (ADA) started a fresh increase from the $0.680 support.
The price is gaining bullish momentum and might soon pump above $0.880.
Cardano Price Signals Fresh Rally
In the past few days, Cardano price saw a steady increase from the $0.680 support zone. The recent positive moves in Bitcoin and Ethereum sparked upside in ADA. The price climbed above the $0.750 and $0.80 resistance levels.
The upward move was such that the price cleared the 61.8% Fib retracement level of the downward move from the $0.9349 swing high to the $0.6861 low, opening the doors for more upside.
ADA price is now trading well above the $0.80 level and the 50-day simple moving average (blue). Besides, there is a key bullish trend line formed with support at $0.80 on the daily chart. The price is up nearly 10% in the past two days and the daily candles suggest a high chance of more gains.
If the bulls remain in action, the price could clear the $0.8550 resistance. The first hurdle sits near the $0.8760 level and the 76.4% Fib retracement level of the downward move from the $0.9349 swing high to the $0.6861 low.
The next resistance zone for Cardano could be near the $0.920 level, above which the price could rise toward the $0.9350 zone. The main resistance is now forming near the $0.950 level.
A close above the $0.950 zone could open the doors for more bullish moves. The next key resistance could be near the $1.020 zone. Any more gains might send ADA toward the $1.0850 level.
Are Dips Supported In ADA?
If there is no move above $0.8760, ADA price could start a downside correction. Immediate support is near the $0.810 level. The first major support is near the $0.80 level and the trend line.
The next major support is near the $0.750 level, below which there is a risk of a drop toward the $0.720 level and the 50-day simple moving average (blue). If the bulls fail to protect the 50-day simple moving average (blue), Cardano price could drop toward the $0.6860 zone.
Overall, ADA is gaining bullish momentum above the $0.80 level. A close above the $0.850 and $0.8650 levels could send the price toward $0.9350 or even $1.020 in the coming days. If not, there could be a pullback toward the $0.80 support.