The price of Cardano (ADA) has resumed its downward correction as the price falls below its moving averages.
Today, the upside is rejected at the 21-day moving average line. The rejection occurred when the bulls tried to break out above the moving averages. On February 8, the bulls broke through the 21-day moving average line, but encountered resistance at the $1.20 high. This caused the altcoin to make another downward correction.
In the latest price action, ADA/USD was in a downward correction and the price fluctuated between $1.00 and $1.25. At the time of writing, Cardano is trading at $1.09. A break below $1 support could signal the resumption of the downtrend. Support at $1.00 has been a key price level since May 2021. On the upside, ADA/USD will resume its upside momentum if price breaks above the moving averages or the high at $1.26 and bullish momentum is maintained above the moving averages.
Cardano is at level 46 of the Relative Strength Index for the period 14. The cryptocurrency has fallen into the downtrend zone for a possible downside move. The cryptocurrency value is above the 80% area of the daily stochastic. This indicates that the altcoin might fall in the near future. The cryptocurrency price bars are below the 21-day line and the 50-day moving averages line. This essentially determines the price movement of an altcoin.
Major resistance zones: $3.00, $3.50, $4.00
Major support zones: $2.50, $2.00, $1.50
ADA/USD is in a downtrend. The downtrend has reached its bearish exhaustion. Meanwhile, the downtrend tested the 50% Fibonacci retracement level through a candlestick on February 8. The retracement suggests that ADA will fall to the 2.0 Fibonacci extension level or $1.010. The price action shows that Cardano is fluctuating above the 2.0 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.