ADA Holds Key Support And Could Rally Above $1.22: Price Analysis

ADA holds key support and could soon rally higher than $1.22 as it recovered sharply from the $10.050 support zone as we can see more in our latest Cardano news.

The coin will continue higher if it manages to clear the main $1.220 resistance zone as ADA holds key support in the near-term as it shows some positive signs above the $1.150 pivot level against the US dollar with it trading nicely above the $1.165 on the 100 simple moving average. There’s a key bearish trend line that is forming with the resistance of $1.218 on the 4-hour charts of the pair which is likely to start a strong increase if there’s a break above the $1.220.

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Source ADAUSD on TradingView.com

After the steady decline, Cardano’s price remained stable above $1.000, and the price traded as low as $1.038 before starting an upside correction. There was a decent rise above the $1.080 and the $1.110 resistance levels. The price surged above the $1.150 level and the 100 simple moving average with the bulls pushing the price higher to $1.220 resistance. Another high was formed near the $1.287 and the price is now correcting lower and a break below $1.220 formed as well near the support level.

ADA traded below 23.6% fib retracement level from the upwards move of $1.038 low to $1.287 high and it is trading above $1.165 and the 100 simple moving average. It now seems that there’s major support forming near this level and the 50% fib retracement level from the move of $1.038 low to $1.287 high is also near the $1.165. Besides, there’s also a key bearish trend line that is forming near the resistance of $1.218 on the 4-hour charts of the pair.

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ADA 24-hour Price Chart (Source: Coingecko)

If there’s an upside break above these resistance levels, the price could start a new increase but in this case, it could rise towards $1.280 and the $1.335 levels. If Cardano’s price fails to clear the $1.200 and $1.220 resistance levels it will start a new decline and the key breakdown support formed near the $1.165 levels. A downside break below this level could open the doors for a fresh drop towards $1.050 and the next support is near the $1.000 level.

The 4-hour MACD for the pair is losing momentum in the bullish zone and the 4-hour RSI is approaching the 50 level.