Cardano (ADA) was stuck between the moving average lines last week and was in a downtrend.
Since May 1, the price of ADA has been testing the 50-day line SMA and closing below it. At the time of writing, ADA/USD pair is trading at $0.38. The cryptocurrency asset may continue to fall after stopping the upward movement at the high of $0.41. However, based on the price indications, it is likely that Cardano will continue to fall. During the decline that started on April 21, ADA experienced an upward correction and a candlestick tested the 78.6% Fibonacci retracement level. The correction predicts that ADA will continue to fall, but will reverse at $0.3578, or the 1.272 Fibonacci extension level. Currently, Cardano is losing value as it breaks below the 50-day SMA line.
On the Relative Strength Index for the 14 period, Cardano is at level 44. The cryptocurrency asset has entered a bearish trend and could fall further. The moving average lines are only partially within this range, so it could still fall. Cardano is now rising again after falling below the oversold area of the market. It exceeds the level 25 of the daily stochastic.
Key resistance zones: $1.00, $1.20, $1.40
Key support zones: $0.60, $0.40, $0.20
Cardano is losing market share. Its price has been fluctuating between $0.38 and $0.41 since April 21. The altcoin is sliding as it approaches the existing support at $0.38. The altcoin will continue to fall if the current support is broken until it reaches a low of $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 in funds.