Cardano Consolidates Above $2.20 Support and Could Continue Its Upward Movement

Over the past two months, Cardano (ADA) price has been trapped in a price range. Cardano is trading in the middle of the price range.

Cardano (ADA) price long-term forecast: fluctuation range

Today, the cryptocurrency is falling after testing resistance at $2.40. The current retracement is likely to hit a low at $2.05. This retracement will push the altcoin into the oversold region. In the oversold region, buyers will emerge to push the altcoin to the previous highs. In other words, the movement within the trading range will resume. 

However, if the buyers push the altcoin above the price levels of $2.40 and $2.80, ADA/USD will resume its upward momentum. The cryptocurrency will then come out of the downward correction. However, if the bears fall below the support of $1.80, Cardano will continue to fall.

Cardano (ADA) indicator analysis

The ADA price is at level 59 of the Relative Strength Index of period 14, which means that the altcoin is in the uptrend zone and above the midline 50. The moving averages of the 21-day line and the 50-day line are horizontally sloping, indicating a sideways trend. 

Technical Indicators

Key resistance zones: $3.00, $3.50, $4.00
Key support zones: $2.50, $2.00, $1.50

What is the next move for Cardano (ADA)?

On the 1-hour chart, Cardano is in a downtrend after rejecting resistance at $2.40.

In the downtrend from November 9, a candlestick tested the 50% Fibonacci retracement level. The retracement suggests that ADA will fall to the 2.0 Fibonacci extension level or the $2.05 level.


 
 
Disclaimers. This analysis and forecast is the personal opinion of the author and does not constitute a recommendation to buy or sell cryptocurrencies and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing any money.