Cardano's (ADA) price is falling after the rejection at the $1.80 overhead resistance. As ADA price falls the downtrend is likely to extend to the low of $1.30. This has been the price action since May 20. This present rejection will imitate the previous price actions of May 20 and 26.
In the previous price action, the market was in a range-bound move between $1.30 and $1.80. As price retraces, the crypto may find support above the moving averages. The upward move will resume if the price finds support above the moving averages. The selling pressure will resume once the price breaks below moving averages. On the upside, if the bulls break the $1.80 overhead resistance, the market will rally to a $2.00 high. However, Cardano will resume a range-bound move, if the bulls fail to break the resistance at $1.80.
Cardano’s price is above the 80% range of the daily stochastic. It indicates that the market has reached the overbought region of the market. Sellers are likely to emerge to push prices down. The crypto has fallen to level 53 of the Relative Strength period 14. ADA is in the bullish trend zone and has room to rally on the upside.
Major Resistance Levels – $2.00 and $2.20
Major Support Levels – $1.00 and $0.80
Cardano is in an upward move. Buyers are still struggling to break the resistance at $1.80. Meanwhile, on May 30 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that ADA will rise to level 1.618 Fibonacci extension or level $1.90.
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.