The price of Cardano (ADA) has made impressive moves as the altcoin breaks out above the 21-day line SMA and retests the 50-day line SMA. Buyers are on the verge of breaking above the 50-day indicator.
Cardano will come out of the downside correction if the bulls break above the 50-day line SMA and the bullish momentum is maintained. ADA will be driven to a rise to the high of $0.90. Bullish momentum will extend to the high of $1.24 if the high of $0.90 is broken.
However, if Cardano fails to rise above the 50-day line SMA, ADA will fall and be forced to move between the moving averages for a few more days. If the altcoin turns away from the recent high and falls, the bears will try to drop below the 21-day line SMA. Cardano will fall and regain the previous lows of $0.40 and $0.47 if the bears are successful. In the meantime, Cardano is trading at $0.63 at press time.
The cryptocurrency price bars are above the 21-day line SMA, but below the 50-day line SMA. This indicates that the market will fluctuate between the moving averages. Cardano is at level 56 on the Relative Strength Index for the period 14. Cardano's price has moved into the uptrend zone and is above the 70% area of the daily stochastic. ADA is in an upward momentum. The 21-day line SMA and the 50-day line SMA are downward sloping, indicating a downtrend.
Key Resistance Zones: $3.00, $3.20, $3.40
Key Support Zones: $1.00, $0.80, $0.60
Cardano is still in an upward correction as it retests the 50-day line SMA. The price may resume its upward momentum if it breaks above the 50-day line SMA. On the other hand, the market will continue its movement within the trading range if buyers fail to overcome the recent high.
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.