The price of Cardano has rallied above the previous low of $1.18 from the December 4 plunge. The cryptocurrency consolidated above the previous low for two weeks before moving back up.
On December 29, 2021, the price of Cardano (ADA) is stuck between the two moving averages. ADA is above the 21-day moving average, but below the 50-day moving average.
Now if buyers break above the 50-day moving average line, it will signal the resumption of the uptrend. Cardano will rise and regain the previous highs of $1.80 and $2.40. On the other hand, if the bears break below the 21-day moving average line, selling pressure will resume. Cardano will retake the previous low of $1.18.
ADA is at the 49 level of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The price bars are above the 21-day moving average but below the 50-day moving averages, indicating that the price may be moving within a range. ADA /USD is below the 80% area of the Stochastic on the daily chart. The market is in a bearish momentum.
Key resistance zones: $3.00, $3.50, $4.00
Key support zones: $2.50, $2.00, $1.50
Cardano continues to be in a downtrend. The cryptocurrency has reached bearish exhaustion as the market consolidates above $1.18 support. ADA Selling pressure has reached bearish exhaustion. Meanwhile, on September 21, the downtrend; a retracement candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of 1.618 or the $1.26 level. The price action indicates that the price of ADA has tested the Fibonacci extension and has reversed.
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.