Cardano has been one of the top performing cryptocurrencies over the past 24 hours, rallying 10% against its USD trading pair and 8% against Bitcoin.
The surge in price has seen a test of the critical $0.10 level of resistance, which is not only a psychological level but also a technical level dating back to April.
In light of a resurgence in the cryptocurrency markets, Cardano made a 152% move to the upside from March 1 to April 1.
It then suffered a 41% correction after touching the $0.10 mark. However, Cardano has remained resilient in spite of the sell-offs by establishing a level of support at around $0.08.
This level has been used as a platform for subsequent moves to the upside, with Cardano testing $0.10 four times in the past month.
If the eleventh-largest cryptocurrency in terms of market cap can break out of the $0.10 level, a rally to $0.11 and $0.15 could be considered targets to the upside.
A bearish scenario would be if Cardano gets rejected from the $0.10 level once again. If this happens, we could see the price of ADA fall to around $0.08, which has confluence with the 200 exponential moving average (EMA) on the daily chart.
There is a degree of bearish divergence on the daily RSI, which also suggests that a rejection from this level is most likely.
In terms of fundamentals, there have been no major announcements coming out of the Cardano camp, however co-founder Charles Hoskinson, who was interviewed by Coin Rivet last year, has been attending numerous conferences over the past few days.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.