Cardano (ADA) price managed to sustain its bullish momentum after breaking out of the short-term consolidation pattern. The recent price action indicates that ADA is set to take out the next significant level.
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- ADA price prints gain for the third consecutive session.
- A decisive close above $0.54 will bring more gains toward $0.60.
- The momentum oscillator offers a signal of the continuation of the upside.
ADA price looks for more upside
On the daily chart, the ADA price refreshes a one-month high near $0.54.The coin tested its all-time low at $0.40 on July 13. Since then ADA has appreciated nearly 20% to the recent highs. Further, the price has successfully breached the critical 20-day EMA at $0.46.
The bearish trend line from the highs of $1.24 acts as a strong upside barrier for the bulls. However, the breach of the trend line indicates the bulls are ready for another leg-up.
A successful daily close above the session’s high would next take out the psychological $0.60 level.
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The momentum oscillator, MACD just crosses above the midline with a bullish bias.
On the 4-hour chart time frame, the ADA price is making higher highs and higher lows, indicating a bullish trend.
After a long time, a bullish moving average crossover occurs in a 4hrs time frame. The 20-day EMA breaks the 200-day EMA on the upper side. The best way to trade in ADA is to enter the buy trade when the price comes close to moving average crossover, as seen in the chart.
On the flip side, the formation of ‘spinning top’ indicates some hindrance or at max diminished upside momentum. Still, a daily close below $0.50 could be the continuation of the downside trend.
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Conclusion:
ADA is facing resistance at the current level, with a higher probability of breaking on the upside owing to the positive sentiment in the broader financial market.
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