Last week, the price of Cardano (ADA) continued its downward trend as the altcoin fell to a low of $2.09. Cardano's recent decline is due to the failure of buyers to sustain bullish momentum above resistance at $2.40.
Buyers were beaten back at this resistance three times before the downtrend kicked in. Bulls have a tough task ahead to keep ADA above $2.40 resistance. Cardano also lacks buyers at higher price levels. The recent drop was a rejection of the high at $2.14. Perhaps this will push the altcoin to the low of $2.05. However, if the bulls fail to hold above the $2.0 support, Cardano will continue to fall to the previous low at $1.91.
Cardano is at level 41 on the Relative Strength Index for period 14, indicating that ADA is in the downtrend zone and below the mid-50s line. The price of the cryptocurrency is below the 21-day line SMA and the 50-day line SMA, indicating further downward movement of the altcoin. Cardano is below the 30% area of the daily stochastic. The market is in a bearish momentum.
Key Resistance Zones: $2.00, $2.50, $3.00
Key Support Zones: $1.50, $1.00, $0.50
Cardano's price fell below the moving averages when the altcoin hit the low of $2.07. The selling pressure will continue to the previous level of $1.91 if the $2.0 support is broken. Meanwhile, a downtrend that started on October 10 showed a retracement candlestick tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of 1.618 or the low of $2.05.
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.