Cardano Hovers above $1.00 as Buyers Defend Current Support

The price of Cardano (ADA) is holding above the strong support of $1.00. The bears have tested the current support repeatedly since December 21. During the January 22 price slump, Cardano fell to the low of $0.91, but the bulls bought the slump.

Today, ADA/USD is trading at $1.04 as of press time, and if Cardano rallies above current support, the market will rise and possibly break above resistance at $1.60. However, in previous price action, bulls have failed to break through resistance after a rally. On the downside, further selling pressure is unlikely as the market has reached the oversold zone. 

Cardano indicator analysis

ADA/USD is in a downtrend and below the moving averages, indicating a possible decline. The price of ADA is at the level 38 of the Relative Strength Index for the period 14, indicating that the altcoin is trading near the oversold area and could reach bearish exhaustion. According to the price indicator, Cardano is below the 20% area of the daily stochastic. It is trading in the oversold region of the market.

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’s price is still in a downtrend, but consolidating above the $1.00 support. Meanwhile, on December 5, the downtrend has seen a retracement candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall to the 1.272 Fibonacci extension level or the $1.00 level. The price action shows that Cardano is fluctuating above 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.

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