Cardano Continues Its Range-Bound Movement As It Faces Further Rejection

Oct 05, 2022 at 11:09 // Price
Coin Idol

The price of Cardano (ADA) continues to move in the range of the downtrend. Buyers have been trying to push the altcoin higher since October 3.

Cardano (ADA) price long-term forecast: bearish

Today, the uptrend is encountering resistance below the moving average lines. Buyers have been finding it difficult to trade above the moving average lines since September 13. In addition, the upward movement of prices is slowed down by the 21-day line SMA. Cardano will break out of the sideways trend if the ADA price rises above the current support and breaks the moving average lines. The bullish momentum will expand and break the overriding resistance at $0.60. However, the bullish scenario will become invalid if the price continues to fall.

ADAUSD (Daily Chart) - October 5, 2022.jpg

Cardano (ADA) Indicator Analysis

Cardano has been relatively stable at the 42 level of the Relative Strength Index for 14 months. The movement within the trading range has continued unabated. The altcoin has reached bearish exhaustion as it is below the 20% area of the daily stochastic. 

Technical Indicators 

Key resistance zones: $0.60, $0.70, $0.80
Key support zones: $0.50, $0.40, $0.30 

What is the next move for Cardano (ADA)?

The price of Cardano is in a downtrend as buyers are showing up in the oversold region and pushing prices higher. Nevertheless, the price of Cardano corrected upwards on September 16 and the candlestick tested the 61.8% Fibonacci retracement level. The correction suggests that ADA will fall to the level of 1.618 Fibonacci extension or $0.41.

ADAUSD_2022 (Daily Chart 2) - October 5, 2022.jpg

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.

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