Cardano Regains Bullish Momentum but Encounters Selling at $0.59
Since May 12, the price of Cardano (ADA) has been trading above the price level of $0.40. After the last downward impulse on May 12, the downtrend has weakened as the bulls bought the dips. Moreover, the cryptocurrency fell into the oversold zone of the market. The upward correction was stopped when the price reached the high of $0.59.
The bulls could not keep the cryptocurrency above the $0.59 resistance level. A break above the $0.59 high will drive ADA to the $0.90 high. However, if the bulls fail to break the recent high, Cardano will fall and be forced to fluctuate between the $0.40 and $0.60 levels. However, if the bears break below the current support, the cryptocurrency will continue to fall to the previous low. Cardano is falling and is trading at $0.56 at the time of writing.
Cardano indicator analysis
Cardano has fallen to level 36 on the Relative Strength Index for the 14 period. Due to the recent upward correction, the Relative Strength Index has risen. However, Cardano continues to trade in the bearish trend zone. It is above the 30% area of the Stochastic on the daily chart. The market has resumed its bullish momentum. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend.
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 in a downtrend as the cryptocurrency resumes its upward correction. However, the downtrend may continue as the bears sold off at the $0.59 high. Meanwhile, the downtrend has shown a candle body on May 12, testing the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall but reverse at the 1.272 Fibonacci extension level or $0.31.
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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