Cardano Trades in the Bullish Trend Zone as It Poises to Reclaim the $0.60 High

On July 18, Cardano (ADA) rallied as the cryptocurrency price broke above the moving average lines. Today, the price of ADA has risen to the high of $0.53 and is approaching the overbought zone of the market.

The cryptocurrency is also approaching the previous price level of $0.55. Since June 15, buyers have failed to keep the price above the high of $0.55. Nevertheless, the current bullish momentum will extend to the high of $0.65 if the resistance of $0.55 is broken. However, if Cardano is rejected at the high of $0.55, the price will fall above the moving average line and then make an upward move. However, if the price breaks below the moving average lines, ADA will fall back to the previous low of $0.44 and $0.40. Meanwhile, ADA/USD is trading at $0.54 at the time of writing.

Cardano indicator analysis

Cardano is at level 63 of the Relative Strength Index for the period 14. ADA is in the bullish trend zone and is capable of further upward movement. The cryptocurrency will continue to rise as long as the price bars are above the moving average lines. The altcoin is above the 80% area of the daily stochastic. The price of ADA has reached the overbought area of the market. The cryptocurrency is likely to go down.

Technical Indicators:  

Key Resistance Zones: $1.00, $1.20, $1.40

Key Support Zones: $0.60, $0.40, $0.20

What is the next move for Cardano?

Cardano is in an uptrend area, but the upward movement is likely to be short-lived as the market reaches the overbought zone. Meanwhile, on July 18 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement suggests that ADA will rise to the level of 2.0 Fibonacci extension or the price level of $0.55.

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.