The current upward move of Cardano (ADA) price may have bearish consequences. According to the daily stochastic, Cardano has fallen into the overbought region of the market. It is doubtful if the rally will continue on the upside.
Since May 23, Cardano has been making positive moves on the upside. ADA fell to $1.10 low as bulls bought the dips. The altcoin has rallied to a $1.80 high but may face rejection at the $1.90 resistance level. On May 20, ADA was repelled as price retested the resistance $1.90. The market declined from the high of $1.90 to the low of $1.10. Nonetheless, the price action is likely to repeat itself, if the altcoin faces rejection at the recent high.
Cardano’s price is rising and approaching the resistance line of the ascending channel. The upside momentum will resume, if the price breaks and closes above the resistance line. The altcoin is at level 53 of the Relative Strength period 14. ADA is in the uptrend zone and has room to rally on the upside. Unfortunately, Cardano is said to be in an overbought condition.
Major Resistance Levels – $2.00 and $2.20
Major Support Levels – $1.00 and $0.80
Cardano's price is rising on the upside. It has an initial hurdle to jump above $1.90 resistance. On May 25 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that ADA will rise to level 1.618 Fibonacci extension or level $1.99.
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.