The price of Cardano (ADA) is in a downward correction as it fluctuates above $0.44 support. Since the price collapse on May 12, the downtrend has eased as the altcoin resumed a sideways movement. The cryptocurrency fluctuates between $0.44 and $0.70 price levels. Today, the price movement was restricted by the 21-day line SMA.
In other words, Cardano fluctuates between $0.44 and $0.55 price level. Since June 13, the bears have retested the current support to break it. If the bears break the current support, the market will fall to the previous low at $0.40. However, if the altcoin loses the $0.40 support, the downtrend will resume. On the other hand, if Cardano holds above the $0.44 support and recovers, it will rally above the moving averages.
Cardano is at level 42 of the Relative Strength Index for the period 14. ADA is trading in the downtrend zone and could fall further. The price bars of the cryptocurrency are below the moving averages, indicating a possible decline. The 21-day line SMA acts as resistance for the price bars. It is below the 25% area of the daily stochastic. The price of ADA is in a bearish momentum and the market has reached the oversold area.
Key Resistance Zones: $1.00, $1.20, $1.40
Key Support Zones: $0.80, $0.60, $0.40
Cardano is in a downtrend as the altcoin fluctuates in a narrow range. The downtrend will continue if the bears fall below the $0.44 support. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall, but will reverse at a level of 1.272 Fibonacci extension or $0.35.
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.