When the Bitcoin (BTC) price is consolidated, other cryptocurrencies in the market are expected to take action. Cardano (ADA) was one of the names that caught a rapid rise in the period we mentioned.
Altcoin approached $ 1 for the first time in its history, and gained 170 percent value in February alone.
Cardano price gains strength against Bitcoin
Weekly chart of ADA / BTC parity. Source: TradingView
Strengthening against bitcoin, Cardano price reached its highest level since July 2018. The uptrend may be further strengthened by breaking resistance that has not been overcome for a long time. The pair is still 380 percent away from its high in early 2018.
As shown in the graph, the level of 0.00001970 Satoshi, which turned from support to resistance, was exceeded as of February. If the ADA price clearly breaks this resistance zone, it may continue towards the 0.00003500 Satoshi level.
Critical levels in the Cardano price
Daily chart of ADA / USDT parity. Source: TradingView
The Cardano price chart showed a massive vertical move making it extremely difficult to establish support and resistance levels. However, several critical regions can be detected with the Fibonacci indicator.
Having reached a local peak at 0.98, the ADA price recovered after declining towards the 38.2% Fibonacci retracement level as of February 15. The long tail on the day’s candlestick indicates that the bulls are buying aggressively at low prices.
If the price loses the 38.2% Fibonacci level, the next support levels will be around $ 0.55 and $ 0.45.
Clearly rising moving averages (MA) and the relative strength index (RSI) near the overbought zone show that control is still in the bulls.
4-hour chart for ADA / USDT pair. Source: TradingView
In the shorter time frame, the horizontal 20-unit exponential moving average (EMA) turned upward during the day. The 50-unit simple moving average (SMA) has lost its upward momentum as it reacts later. The relative strength index also rose above the average in the 4-hour time frame.
So after the short correction in the ADA price, the advantage seems to be back to the bulls.
If Cardano continues its movement upwards after this correction, an accelerated increase can be observed. According to the Fibonacci expansion tool, the next levels in the uptrend are calculated between $ 1.50 and $ 3.20.
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