Cardano has been retracing for the past week after buyers pushed ADA to the overhead resistance zone. After retesting the resistance the altcoin fell to $1.05 low.
ADA price is now fluctuating above the $1.10 support. Since February, the overhead resistance has not been broken. The price action has remained the same every month. For instance, in February and March, the bulls retested the $1.50 overhead resistance level.
Consequently, ADA fell to $1.00 support and resumed consolidation above the current support. ADA/USD will now resume a range-bound movement below the overhead resistance. ADA price will fluctuate and retest the resistance level. On the upside, if the bulls breached the $1.50 overhead resistance, Cardano will resume upside momentum. However, the downward correction will continue to persist if the overhead resistance remains unbroken.
ADA price is above the 50-day SMA support. A break below the 50-day SMA will mean a further decline in Cardano's price. ADA will resume upward if the 50-day SMA holds. Presently, ADA is at level 47 of the Relative Strength Index period 14. That is the altcoin is in the bearish trend zone and capable of further decline.
Major Resistance Levels – $1.40 and $1.60
Major Support Levels – $0.80 and $0.60
In the meantime, the market is in a downward move. The Fibonacci tool has indicated a further downward movement of price. On April 14 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. This retracement implies that ADA will rise to level 2.618 Fibonacci extensions or the low of $1.02. From the price action, ADA is in a range bound move above the current support.
Disclaimer. This analysis and forecast are the personal opinions of the author 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.