The price of Cardano (ADA) is rising after a minor setback from the recent high. The cryptocurrency tested the recent high at $2.20 before entering the downtrend.
Today, ADA is trading at $1.98 after retreating from its recent high. ADA/USD has resumed its uptrend. Further upside is unlikely as the altcoin is trading in overbought territory.
However, if the bulls break through resistance at $2.25, Cardano could rise to $2.58. However, buyers will likely face strong resistance at the recent high. The resistance will cause the cryptocurrency to fall back to the previous low. On the other hand, if the current resistance remains unbroken, the market will continue to fluctuate between $1.90 and $2.20.
ADA/USD is still trading near the overbought area at level 68 on the period 14 Relative Strength Index. In addition, ADA is above the 65% area on the daily stochastics. This suggests that the altcoin is in a bullish momentum. It is likely that the altcoin will trade marginally when it reaches the overbought area.
Major Resistance Levels - $2.00 and $2.20
Major Support Levels - $1.60 and $1.40
Cardano is in an uptrend after the minor retracement. The cryptocurrency is likely to move up. Meanwhile, on August 14 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will rise but reverse at the 1.272 Fibonacci extension or $2.58.
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.