ADA price will break to $0.13 if bulls flip the horizontal resistance line at $0.114 into support
Cardano’s (ADA) token is trading around $0.104 against the US dollar and has crossed below the support barrier provided by the 100-day simple moving average on the daily chart.
While the price could dip even further, the technical picture for ADA/USD suggests a breakout above $0.12 if the price trends above the two major barriers.
The first target is a break above the daily 100-SMA and the next is to flip a major horizontal resistance line that has capped multiple attempts since October 12 at $0.114.
Failure to achieve these targets could provide an easy path for the bears to do further damage short term.
As seen in the chart above, Cardano has tested the resistance area twice in the past 30 days — on October 22 and on November 7.
If the price remains above the 50-SMA and 200-SMA, a run to the 100-SMA at $0.108 will signal a strengthening of the bullish momentum. The main objective for bulls is to prevent a rejection similar to the one witnessed at the level this past weekend, forcing ADA/USD to lows of $0.098.
On the 4-hour chart, the RSI and the MACD are suggesting a bullish divergence. If this outlook strengthens, the upward trajectory will be clear: take out $0.114, followed by an initial breakout to the psychological resistance level around $0.12, and then attack the formidable area near $0.13.
On the other hand, if Cardano bulls fail to keep bears off at the crucial barrier, a cue to the sellers could see them push prices towards the 200-SMA at $0.102. Beyond this level, a fragile ADA/USD market could see prices collapse beyond the 100-SMA at $0.100, with a decline to November 3 lows of $0.88 possible near term.
Elsewhere in the crypto market, analysts forecast that the BTC price is likely to retest the area below the $16,000 mark before seeing a major uptick to a new 2020 high. Likewise, ETH bulls are likely to target short term highs around $500, with analysts also predicting a jump to the $800 region in the days after Ethereum launches its ETH 2.0 Beacon Chain this December.
The post Price analysis: ADA bulls look to flip critical resistance level appeared first on Coin Journal.
