On April 7, 2021, Cardano (ADA) price rallied to a high $1.35 and subsequently resumed downward. Before that the altcoin has been fluctuating between $1.15 and $1.25.
Yesterday, April 6, ADA rallied to $1.35. The resultant effect is the current downward movement of price. Now on the downside, if the bears break the previous low at $1.15, the selling pressure will continue to the low of $1.05. On the other hand, if ADA recovers from the downtrend and breaks above the $1.25 resistance, the market will rally to $1.50. Meanwhile, the market is falling on the downside at the low of $1.178 at the time of writing.
Since February and March, ADA's upward move is finding penetration difficult at the $1.40 overhead resistance. Each time the bulls are resisted the market will fall and retest the bullish trend line. If the price breaks below the trend line, it will signal the resumption of the downtrend.
Major Resistance Levels – $1.40 and $1.60
Major Support Levels – $0.80 and $0.60
Cardano has resumed a downward move after rejection at the resistance of $1.30. The selling pressure will resume if price breaks below the support at $1.15. Meanwhile, on April 6 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This retracement implies Cardano may fall to level 2.0 Fibonacci extension or the low of $1.05.
Disclaimer. This analysis and forecast are the personal opinions of the author and 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.