Today, May 19, 2021, Cardano (ADA) price drops sharply to the low at $1.40. Cardano's price is holding above the 50-day SMA and above $1.40 support after the bearish impulse.
Before now the altcoin was earlier in a bullish momentum as price rallied to $2.47 high. The bulls could not sustain the bullish momentum above the $2.40 high because of an intense selling pressure above the resistance zone. Consequently, Cardano has been in a downward move. It appears the selling pressure will fall beyond $1.40 support. On the downside, if the bears break the current support at $1.40, the market will decline to either $1.2 or $1.00.
Cardano’s price has broken and closed below the bullish trend line. The implication is that the bullish trend has been terminated as bears took control of price movement. On the daily chart, the bears are attempting to break below the 50-day SMA. A break below the SMAs implies that the price is in the bearish trend zone. It also means that the altcoin is capable of falling on the downside.
Major Resistance Levels – $2.00 and $2.20
Major Support Levels – $1.00 and $0.80
Cardano's price is falling on the downside. According to the Fibonacci tool, ADA is likely to fall to the previous lows. On May 16 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that ADA will fall to level 2.618 Fibonacci extension or the low of $1.2759.
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.