Cardano (ADA) price is currently in a downward correction. The market has entered oversold territory, reaching a low of $1.23 at press time.
Looking back, Cardano reached a high of $1.31 in January 2018, and the cryptocurrency was rejected at its recent high. The market fell to a low of $0.020 on December 10, 2018, and the price level was held until 2020 before the uptrend resumed.
Today, Cardano has reached the high of $3.09. However, the cryptocurrency is falling as the market has reached the overbought region. When the market reaches the oversold region, the selling pressure will eventually ease. Buyers will emerge and push the prices up. If the buyers keep the price above $3.09, the market will reach a new high.
On the weekly chart, ADA/USD has fallen below the 20% area of the daily stochastic. Further selling pressure is unlikely as the market has reached the oversold area. Currently, Cardano has fallen to support at $1.23, which is a historical price level from February 2021. The uptrend will continue if the current support levels hold.
Key resistance zones: $3.00, $3.50, $4.00
Important support zones: $2.50, $2.00, $1.50
On the monthly chart, Cardano has retraced to the $1.23 support level or above the blue line, the 21-day moving average. The $1.23 price level is the previous historical price level from February 2021. If these levels hold, the uptrend will resume. In addition, Cardano has reached the oversold area. Meanwhile, the September 1 uptrend has a candlestick body testing the 38.2% Fibonacci retracement level. The retracement suggests that ADA will rise to the 2.618 Fibonacci Extension level or $8.20.
On the weekly chart, the cryptocurrency is in the oversold zone. Therefore, the next direction of Cardano will be an uptrend. Moreover, according to the analysis of the Fibonacci tool, it is likely that Cardano (ADA) will rise to $8.20 by 2022.
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.