Price analysis: ADA bulls look to flip critical resistance level

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.

Cardano price daily chart. Source: TradingView

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.

ADA/USD price on the 4-hour chart. Source: TradingView

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.

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