Cardano (ADA) price has dropped below the moving averages as the price fell to the low of $0.91.
Since March 28, buyers have pushed the altcoin to the high of $1.24, but bulls could not keep the bullish momentum above the recent high. The altcoin was said to be trading in the overbought territory of the market.
Today, Cardano fell, but it is trying to climb back up. ADA/USD is trading at $0.95 at the time of writing, and if the price of ADA rises above the 50-day moving average, the cryptocurrency will regain bullish momentum. The market will rise to regain the high of $1.20. On the other hand, if the altcoin turns away from the moving averages, Cardano will fall to the low of $0.78.
The price of the cryptocurrency is below the moving averages, indicating a further downward movement of the cryptocurrency. ADA is at the level 41 of the Relative Strength Index for the period 14. The market has reached the downtrend zone and is below the centre line 50. The 21-day line SMA and the 50-day line SMA are up. Cardano is below the 20% area of the daily stochastic. This indicates that selling pressure should stop as Cardano falls into the oversold area. Buyers are expected to emerge in the oversold area.
Key resistance zones: $3.00, $3.50, $4.00
Key support zones: $2.50, $2.00, $1.50
Cardano is in a downward correction as the market has reached the oversold region. It is expected that prices will rise again. Meanwhile, on March 28, the uptrend; a retraced candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will rise but reverses at the 1.272 Fibonacci Extension level or $0.97. The altcoin reached the low of $0.91 and retreated.
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.