The price of Cardano (ADA) has resumed selling pressure after failing to break above the 50-day line SMA. In the previous price action, Cardano was in a sideways movement between the moving averages. Today, the price of ADA fell to the current support at $0.44. If the bears break it, the price of ADA will fall to the low of $0.35.
At this low, ADA/USD will fall into the oversold region of the market. In the oversold region, the bearish momentum will subside as buyers emerge. The uptrend may face resistance at the 21-day line SMA. At press time, the cryptocurrency is trading at $0.46.
Cardano is at level 37 of the Relative Strength Index for the period 14. The altcoin is falling and approaching the oversold area in the bearish trend zone. The price bars of the cryptocurrency are below the 21-day line SMA and the 50-day line SMA. This indicates a possible decline. The daily stochastic is below the 20% area ADA is in a downward momentum and the market has reached the oversold zone. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend.
Key Resistance Zones: $3.00, $3.20, $3.40
Key Support Zones: $1.00, $0.80, $0.60
Cardano price bars are below the moving averages, indicating renewed selling pressure. The altcoin has declined, but it is hovering above the current support. A break below the current support will enable the cryptocurrency. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall, but will reverse at the level of 1.272 Fibonacci extension or $0.35.
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.