Cardano in a Downward Correction, Loses Crucial Support at $1.00

The price of Cardano (ADA) lost its crucial support at $1.00 as the bears broke below it. The cryptocurrency fell to a low of $0.81 as the bulls bought the dips.

On February 22, the price of ADA corrected upwards after hitting the low of $0.81. In other words, buyers emerge in the oversold region of the market, driving Cardano to previous highs. 

On the upside, the price of ADA, if it rallies above the current support, will break out above the high of $1.00. Bullish momentum will extend above the moving averages and break through resistance at $1.26. However, if buyers fail to keep the price above the $1.00 high, ADA/USD will be forced to continue a sideways movement below the recent high. In the meantime, Cardano has risen to $0.91 as of press time.

Cardano indicator analysis

Cardano has risen to level 37 on the Relative Strength Index for the 14 period. Cardano is correcting upwards as buyers are emerging in the oversold region of the market. The price of the cryptocurrency is still below the moving averages, which gives bears the advantage to sell on any rally. ADA/USD is below the 20% area of the daily stochastic. This indicates that the downtrend has reached bearish exhaustion. The moving averages of the 21-day line and the 50-day line are sloping south, indicating a downtrend.

Technical Indicators: 

Key Resistance Zones: $3.00, $3.50, $4.00

Key Support Zones: $2.50, $2.00, $1.50

What is the next move for Cardano?

ADA/USD is in a downtrend. According to the price indicator, Cardano has reached the oversold zone of the market. Meanwhile, the downtrend tested the 78.6% Fibonacci retracement level through a candlestick on January 22. The retracement suggests that ADA will fall to the 1.272 Fibonacci Extension level or $0.72.

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.