Today, the price of Cardano (ADA) resumed its upward movement to retest the $3.0 resistance zone. Yesterday, buyers pushed the cryptocurrency to the $2.88 high, but resistance was encountered as it fell above the current support level.
Last week, the uptrend stalled at the $3.0 resistance zone. When buyers climb above the $3.0 overhead resistance, it signals the resumption of an uptrend. ADA/USD will make a new high at $3.20 or $3.60.
The RSI is in the bullish trend zone, which gives the altcoin the opportunity to move higher. However, if Cardano continues to have repeated rejections, ADA will be forced to move sideways below resistance. Alternatively, if the bears break below the current support, the bullish scenario will be invalidated. ADA/USD will drop to $1.90 and $1.40 low.
The cryptocurrency is at level 64 of the Relative Strength Index of period 14. It indicates that the market is still in the uptrend zone and above the midline 50. Buyers have continued the recent rallies as the price bars remain above the moving averages. ADA is above the 25% area 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 likely to continue an upward movement. The cryptocurrency's tendency to rise is likely as the price bars are above the moving averages. Meanwhile, the uptrend from August 29 has seen a retracement candlestick testing the 38.2% Fibonacci retracement level. The retracement suggests that ADA will rise to the 2,618 Fibonacci Extension level or the $3.27 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.