Cardano (ADA) has resumed a downward move after a recent breakdown. Today the market has risen above the $2.30 level, but the uptrend is coming under selling pressure at the recent high.
If the bears break down through support at $2.0, selling pressure will resume. In the recent price action, Cardano fell above $2.0 support and continued its uptrend, but it was short-lived. However, if the bears break the $2.0 support, the market will resume the downtrend. It is possible that Cardano will fall to the low of $1.36. Meanwhile, ADA /USD is trading at $2.32 at the time of writing.
On the daily chart, the price of ADA has broken the 21-day line SMA, but found support above the 50-day line SMA. If the bears break below the moving averages, the downtrend will resume. The cryptocurrency is at level 44 of the Relative Strength Index of period 14, indicating that the market is in the downtrend zone and below the midline 50. ADA is above the 25% range of the daily stochastic. This indicates that the market is in a bullish momentum.
Major Resistance Levels - $3.50 and $4.00
Major Support Levels - $3.00 and $2.50
Cardano is in a downtrend. The cryptocurrency is trading and holding above the 2.30 support. Meanwhile, on September 7 downtrend, a retraced candle tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of 1.618 or the $1.36 level.
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.