Cardano Loses $0.37 Support as It Resumes Selling Pressure

Nov 09, 2022 at 09:43 // News
Coin Idol
ADA will climb above the moving average lines

Cardano (ADA) has fallen below its moving average line, signaling a downturn in the cryptocurrency. The initial downturn forced the altcoin to fall to its low of $0.34 on November 8.

The altcoin has corrected higher over the past 48 hours while consolidating above the $0.37 support. If the $0.37 level holds, ADA will climb above the moving average lines. Upside momentum could resume. It would be possible for buyers to retest the upper boundary at $0.60. However, if ADA/USD falls below $0.37 support, selling pressure would resume. At price levels of $0.33 and $0.34, Cardano will retreat and return to the previous low. 

Cardano indicator analysis 

Cardano has fallen to level 42 on the Relative Strength Index for the 14 period due to the current decline. The price bars are currently below the moving average lines, indicating that the altcoin will continue to trend downwards. A positive momentum is that Cardano is above the level 25 of the daily stochastic. 

ADAUSD( Daily Chart0 - November 9.png

Technical indicators 
Key Resistance Zones: $1.00, $1.20, $1.40
Key Support Zones: $0.60, $0.40, $0.20 

What is the next move for Cardano 

Cardano is currently trading between $0.34 and $0.40 after the price collapsed on November 8. The collapse on November 8 was followed by the $0.34 price level. Moreover, the $0.40 resistance zone staved off an upward correction. If the cryptocurrency breaks above the $0.40 resistance, the rally will resume. If the current support level of $0.34 is breached, the downtrend will continue. 

ADAUSD(4 Hour Chart) - November 9.png

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 in funds.

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