Cardano Rallies 20% in a Day on XRP FOMO – Here’s Why ADA Price Could Surge Another 20%

Key Takeaways:

• ADA price started a major increase after XRP rallied above $0.65.
• It broke a major bearish trend line with resistance near $0.320 on the daily chart.
• The price is up over 20% and might rise further if it clears the $0.370 resistance.

NEW DELHI (CoinChapter.com) — Cardano’s ADA rallied above the $0.30 resistance for the first time in over a month. XRP is dragging the market higher after its win against the SEC.

Cardano Price Jumps Over 20%

After a strong rejection near $0.220, ADA price increased against the US Dollar. It formed a support base above the $0.280 level and recently started a steady upward move.

In an important event and a huge win for Ripple, a US judge ruled XRP is not a security. It sparked a sharp upward move in XRP, dragging it over 90% higher.

A huge win today – as a matter of law – XRP is not a security. Also a matter of law – sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, to charities, to employees are not securities.

— Stuart Alderoty (@s_alderoty) July 13, 2023

ADA also gained traction above the $0.30 resistance zone and the 50-day simple moving average (blue).

ADA price climbed above a major bearish trend line with resistance near $0.320 on the daily chart. It also cleared the main decline’s 50% Fib retracement level from the $0.4614 swing high to the $0.2205 low.

It is now facing resistance near the $0.370 zone. The stated level is near the 61.8% Fib retracement level of the main decline from the $0.4614 swing high to the $0.2205 low.

The first major resistance is near the $0.40 zone, above which ADA might accelerate higher. The next major resistance sits at $0.450. Any more gains might pump the price toward the $0.50 level.

Are Dips Limited in ADA?

If there is no upside break above the $0.37 resistance zone, ADA price might start a downside correction. Initial support on the downside is near the $0.342 level.

The first major support is forming near the $0.32 and trend line zones. A downside break below the $0.32 support zone might send the price toward the main support at $0.30 and the 50-day simple moving average (blue) the 50-day simple moving average (blue). Any more losses could initiate a move toward the $0.280 support.

Overall, ADA is gaining pace above the $0.34 resistance. If the bulls remain in action, it could easily pump above the $0.37 resistance. If they fail, there is a risk of a drop toward the $0.30 support zone.

The post Cardano Rallies 20% in a Day on XRP FOMO – Here’s Why ADA Price Could Surge Another 20% appeared first on CoinChapter.