The price of Cardano (ADA) is in a downward correction, but the cryptocurrency has recovered above the $0.80 support and has started to move up again.
In the previous upward movement, ADA rose above the $0.84 support but was challenged at the $1.01 high. The bulls failed to keep the price above the moving averages, hence the downtrend. Cardano would continue to fall if the downtrend crossed the previous low at $0.74.
Today, the bulls have taken control of the price. The market has risen to $0.84 at the time of writing. On the upside, a break above resistance at $1.01 will drive ADA above the moving averages. However, if the bulls fail to break above the moving averages, the downtrend will resume.
ADA is at level 41 of the Relative Strength Index for the period 14. The cryptocurrency is in the downward zone despite the price increase. The price of ADA is below the 21-day line and the 50-day moving averages line, indicating a possible decline. The market has resumed its bullish momentum as the cryptocurrency is above the 25% area of the daily stochastic. The moving averages are sloping south, indicating a downtrend.
Key resistance zones: $3.00, $3.50, $4.00
Key support zones: $2.50, $2.00, $1.50
ADA/USD is in an uptrend after rising above $0.80 support. Can the bulls overcome the resistance at $1.01? The current downtrend has weakened after ADA fell to the low of $0.74 and broke above support at $0.85. The Fibonacci tool indicates a possible reversal at the 1.272 Fibonacci extension level or $0.72. The price action shows that ADA has reversed above the Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.