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Cardano (ADA) is in a downtrend, trading at $1.29 as of press time. The cryptocurrency has consolidated above $1.18 support, but is fluctuating between the $1.18 and $1.40 levels.
The support at $1.18 was the previous low after the price collapsed on December 4. For over two weeks, Cardano has been trapped in a range at the bottom of the chart.
If buyers break through resistance at $1.40 and $1.80, the market will rally above the moving averages. ADA price will be out of the downward correction. Cardano will resume its uptrend and regain its previous high at $2.40. Cardano will continue its current price action if the bullish scenario is invalidated. On the downside, selling pressure has eased as the market has reached the oversold zone.
Cardano indicator analysis
ADA has risen to level 41 on the Relative Strength Index for period 14. The altcoin is in the downtrend zone despite the recent rise in price. The 21-day and 50-day moving averages are sloping south, indicating a downtrend. ADA/USD is above the 40% area of the daily stochastic. The market is in a bullish momentum. The bullish momentum is unstable due to price volatility.
Technical Indicators
Key Resistance Zones: $3.00, $3.50, $4.00
Key Support Zones: $2.50, $2.00, $1.50
What is the next move for Cardano?
Cardano is still in a downward correction. ADA selling pressure has reached bearish exhaustion. Meanwhile, on September 21, the downtrend has seen a retracement candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of 1.618 or the $1.24 level. The price action shows that the price of ADA has consolidated near the Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.