Cardano Pauses above $1.30 Support as Bulls and Bears Decide Next Move
Cardano (ADA) has been on a steady decline lately. Over the past five days, the ADA price has consolidated after the December 4 sell-off.
On December 4, the bears pushed Cardano’s price as low as $1.18, but the bulls bought the dips. Buyers failed to sustain the rally as demand dried up at higher price levels.
Meanwhile, bulls are defending the current support at $1.30. In summary, ADA/USD is fluctuating between $1.30 and $1.50 as bulls and bears decide the next move. Cardano will continue its uptrend if it breaks above the resistance at $1.50. At the same time, bullish momentum continues to push ADA above the high at $2.20. Conversely, ADA will come under selling pressure again if the price falls below the support at $1.30. The altcoin will continue to fall to $1.18 or $1.00.
Cardano indicator analysis
ADA is at level 39 on the Relative Strength Index for period 14. The cryptocurrency is in a downtrend and is vulnerable to a decline. The cryptocurrency prices are below the moving averages, indicating further downward movement. ADA is above the 25% area of the daily stochastics. The altcoin is in a bullish momentum, but it is volatile.
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 has been in a downtrend. The cryptocurrency has fallen into an oversold region of the market. Buyers are expected to emerge in the oversold region. Meanwhile, a downtrend started on September 21. A retracement candlestick has tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall but reverse at the 1.272 Fibonacci extension level or the $1.66 level. From the price action, ADA tested the Fibonacci extension but fell to the low of $1.39.
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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