Cardano (ADA) price is in a downward correction as the altcoin fluctuates above the $0.85 support.
On February 28, the price of ADA corrected upward as it retested the $1.00 resistance but experienced resistance. The bears turned the previous support into resistance. If the bulls had broken the recent high, the bullish momentum would extend to $1.20 and later to the $1.60 price level.
Today, the price of ADA is falling due to the recent rejection. The cryptocurrency is expected to trade in a range between $0.85 and $1.00. The cryptocurrency price will fall and regain the previous low at $0.85. However, if the current support is broken, the market will fall to the low of $0.74. Nevertheless, ADA will continue its price movement if the current support holds.
ADA's price is below the moving averages as the altcoin fails to break above the moving averages. Cardano is at level 45 of the Relative Strength Index for the period 14. It is in the downward zone and below the midline 50. ADA /USD is above the 80% area of the daily stochastic. The cryptocurrency is likely to fall after the recent upward correction. The moving averages are sloping south, indicating a downtrend.
Key resistance zones: $3.00, $3.50, $4.00
Key support zones: $2.50, $2.00, $1.50
On the 4-hour chart, ADA /USD is in an upward movement, but the market has reached an overbought region. The uptrend is encountering resistance at $1.01. Meanwhile, the uptrend has a candle body on February 27, which tested the 50% Fibonacci retracement level. The retracement suggests that ADA will rise to the 1.272 Fibonacci Extension level or $1.11. From the price action, ADA is retreating from the recent high.
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.