Cardano (ADA) Price Signals Bullish Breakout After Hitting New 2020 Highs

After consolidating above $0.300 for some time, ADA price started a fresh increase. Cardano cleared a few key hurdles near $0.320 and $0.350

Cardano (ADA) price is displaying bullish momentum above the $0.50 level. It outpaced both Bitcoin and Ethereum in the past few sessions with a massive move of over 80%.

Cardano Price Signals Bullish Breakout After consolidating above $0.300 for some time, ADA price began a fresh increase. It cleared a few key hurdles near $0.320 and $0.350 to begin a fresh surge. It even broke a major bearish trend line with resistance at $0.3750 on the weekly chart. Recently, Cardono founder, Charles Hoskinson hinted to join the Donald Trump administration as a crypto advisor.

The price gained over 80% in a few days and outpaced both Bitcoin and Ethereum. There was a sharp increase above the $0.450 and $0.50 levels. The price even spiked above the 61.8% Fib retracement level of the last major drop from the $0.8080 swing high to the $0.2770 low.

ADA price settled above the $0.550 resistance zone and the 50-week simple moving average (blue). It seems like the price is now struggling to settle above the $0.6050 resistance zone.

A successful close above the $0.6050 resistance zone could set the tone for more gains. The first major resistance on the upside is near the $0.6820 level or the 76.4% Fib retracement level of the last major drop from the $0.8080 swing high to the $0.2770 low.

The next major resistance is near the $0.720 level. A weekly close above the $0.720 resistance could send the price toward the $0.800 resistance. Any more gains might open the doors for a move toward the $1.00 level.

Are Dips Supported In ADA? If there is no move above $0.605 or $0.6820, ADA price could correct lower. Immediate support is near the $0.5750 level. The first major support is near the $0.550 level.

If Cardano closes below the $0.550 support, it might spark bearish moves. The next major support is near the $0.450 level and the 50-week simple moving average (blue), below which there is a risk of a drop toward $0.400. Any more losses might increase selling pressure and send the price toward $0.320.

Overall, ADA is signaling a strong bullish move above $0.550. If the bulls remain in action, Cardano could rally further toward the $0.6820 level or $0.800. Conversely, the price could correct lower and revisit the $0.450 support zone.