Cardano's (ADA) price slumped to a $1.402 low as the price immediately corrected upward. The ultimate price target of Cardano is to break the $1.80 overhead resistance level. Buyers are yet to break the overhead resistance since May 19.
In May, ADA/USD has been in a range-bound move below the overhead resistance. Presently, the upward correction is facing rejection at the $1.60 high. If the bulls fail to break into the previous highs, the downtrend will resume. ADA will fall to the previous low at $1.33. On the other hand, if the bulls succeed above the $1.60 resistance, a retest at $1.80 overhead resistance is likely.
ADA price has broken the 21-day SMA but found support above the 50-day SMA which suggests a possible upward movement of prices. ADA is in a bearish momentum as price is below the 60% range of the daily stochastic. The selling pressure will resume if price breaks below the 21-day and the 50-day SMA.
Major Resistance Levels – $2.00 and $2.20
Major Support Levels – $1.30 and $1.10
Cardano is in a sideways trend below the $1.80 overhead resistance. Meanwhile, on June 4 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that ADA will fall to level 2.0 Fibonacci extension or level $1.394.
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.