Cardano Recovers Above $0.38 Support And Targets The Previous High

Feb 22, 2023 at 13:54 // News
Coin Idol
The current decline is the result of a lack of bullish momentum

Cardano (ADA) price has been in a bullish trend zone, but has fallen below the 21-day SMA.

Cardano price long-term forecasts: bullish

The current decline is the result of a lack of bullish momentum. Buyers have been unable to maintain upward momentum above the $0.42 resistance. The cryptocurrency asset would have risen to its previous highs of $0.45 and $0.50 had the resistance at $0.42 been broken. On the downside, Cardano fell to a low of $0.37 after two rejections. The altcoin climbed above the 50-day line SMA, but fell below the 21-day line. This means that Cardano will be forced to move in a range between the moving average lines for a few days. Moreover, when the moving average lines are broken, the altcoin will show a trend. For example, if the moving average line is broken, the altcoin will fall to a low of $0.30 or $0.32. 

Cardano indicator analysis

The Relative Strength Index for period 14 shows that Cardano is currently trading at 50. This indicates that the price of the altcoin has stabilized at this level. The fact that the price bars are between the moving average lines indicates a potential movement within a certain range. Cardano has reached the oversold area of the market. The daily stochastic is currently below the level of 20.

ADAUSD(Daily Chart) - February 22.23.jpg

Technical indicators

Key resistance zones: $1.00, $1.20, $1.40

Key support zones: $0.60, $0.40, $0.20

What is the next move for Cardano?

After rejecting the high at $0.40, Cardano is currently in a downtrend. The current decline has reached bearish exhaustion. The altcoin is rising as it remains above the support level of $0.38. Moreover, as the cryptocurrency value falls between the moving average lines, it is likely to trade in a range again.

ADAUSD(4 Hour Chrt) - Februry 22.23.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 in funds.

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