ADA price could rally toward $2 if upside breaks through general resistance at $1.50
Cardano’s price has broken higher since halting a major downtrend at $0.92 on April 21. The crypto-currency ranked 6th in terms of market capitalization has seen its value rise by around 13% in the past week, with an intraday rise of 8% currently placing it around $1.38 at the time of writing.
The ADA market is likely to see a surge in buying as part of the resurgent altcoin market, led by Ethereum, which just crossed the $2,700 mark.
Cardano is poised to soar thanks to major news in the form of a record-breaking partnership with the Ethiopian government. According to IOHK Media, the project is targeting 5 million students in what is “the largest blockchain deployment in the world.”
The news is likely to add to the bullish momentum, fueling pressure on the buy side.
Cardano Price Analysis
The ADA/USD pair is trading above a major horizontal resistance line at $1.35, with bulls looking to retest the support line at $1.40. The rise has taken the price away from the downtrend line that had capped the move near $1.20.
The pair is also showing positive signals as it is trading above the 50 SMA and the 20-day EMA on the 4-hour chart.
The break of the ascending triangle formation is likely to result in a retest of the 0.786 Fib level ($1.42). From there, bulls can target the $1.50 supply area, with the all-time high of $1.55 possible if momentum helps buyers break through the barrier.
A clean break above broad resistance at $1.73 could see ADA/USD make a new all-time high above $2.
On the other hand, short-term profit-taking is likely to push ADA price toward immediate support at $1.31 (Fib level 0.618). Multiple support levels at the 20-day EMA ($1.28), Fib 0.5 ($1.24) and SMA 50 ($1.20) could help the upside bounce quickly on further declines.
Cardano would flip to the downside, however, if prices fall below $1.20 and the descending trendline, with support at $1.07. The key price level to watch in this case will be the psychological support at $1.