Cardano Drops Sharply From $1.40 High, May Continue Selling Pressure

Cardano (ADA) was in a price spike when the altcoin hit $1.40 on July 26. The $1.40 peak attracted sellers, while buyers pushed the crypto into that region.

At the same time, the price of ADA fell sharply to a low of $1.21 on the same day. Buyers recovered and continued their uptrend, but the uptrend is restricted below the high of $1.310.

Cardano's upside is uncertain as the market faces rejection at a minor resistance at $1.310. However, if price rallies back above support at $1.23, bullish momentum will overcome resistance levels at $1.310 and $1.40. However, if buyers prevail, ADA will rise to either $1.60 or $1.85. Currently, the price of ADA is falling as it is rejected from its recent high. If selling pressure continues, ADA will fall to either $1.15 or $1.85.

Cardano indicator analysis

The cryptocurrency price has broken above the descending channel resistance line. If the price breaks the resistance line and closes above it, the uptrend could continue. Cardano is at level 51 on the Relative Strength Index for period 14, indicating that there is a balance between supply and demand.

Technical indicators:

Major Resistance Levels - $2.00 and $2.20

Major Support Levels - $1.60 and $1.40

What is the next move for Cardano?

Cardano is likely to continue a downward move. Meanwhile, on July 27 downtrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement indicates that ADA will fall to the 1,618 Fibonacci extension level or the $1.10 level. From the price action, ADA will fall after retesting the resistance at $1,310.

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.