Is $1.50 the next target for ADA following its latest rally?
The broader cryptocurrency market has slightly recovered from its recent slump, with the prices of most coins in the green zone.
The prices of Bitcoin and other leading cryptocurrencies have improved over the past 24 hours. Bitcoin finally topped the $49k level before slightly retreating to now stay above $48,000 per coin. As a result, the total cryptocurrency market cap rose past the $2.2 trillion mark again.
ADA, the native coin of the Cardano blockchain, is one of the best performers amongst the top ten cryptocurrencies by market cap. ADA’s value has surged by more than 7% in the last 24 hours, outperforming the other leading cryptocurrencies, including Bitcoin, Ethereum, Binance Coin (BNB), Solana and Avalanche.
ADA currently occupies sixth place in the market, just behind Solana’s SOL. The cryptocurrency’s price could rally higher in the coming hours and days, allowing it to compete with Solana for fifth place in the market. ADA is still behind its previous high price of $2 but could target it if the bulls regain control of the market.
Key levels to watch
The ADA/USD 4-hour chart is currently one of the most bullish in the top ten list of the market. ADA’s technical indicators show that the cryptocurrency is currently performing excellently and could rally higher soon.
The MACD line has crossed the neutral zone and is currently in the bullish region. Furthermore, the 14-day RSI of 63 shows that ADA could soon enter the overbought area if the current market momentum can be maintained.
If the bulls continue to make positive moves, ADA could soon top the first major resistance level at $1.47 per coin. Unless there is an extended bullish performance, the second major resistance level above $1.86 should limit further upward movement in the short term.
However, with the bears not completely gone, ADA could resume its bearish movement in the coming hours. If that happens, ADA could dip below the $1.20 psychological level before the end of the day. Unless there is a massive sell-off, ADA should stay above the $1.10 support in the coming hours.