Cardano is in an Impressive Move, Risks Further Decline below $1.40

Jan 19, 2022 at 13:12 // Price

In the past 48 hours, the price of Cardano (ADA) has been moving in the zone of the uptrend. The altcoin recovered from the support at $1.15, broke above the moving averages and then reached the high of $1.60.

Buyers failed to continue the bullish momentum above the $1.60 high as the altcoin faces rejection. If the altcoin falls and finds support above the moving average, the bullish momentum will likely repeat. A break above the high at $1.60 will drive ADA to the next resistance at $2.40. On the other hand, if the bears break below the moving averages, the downtrend will resume. Cardano will fall back to the previous low of $1.15.

Cardano indicator analysis

The ADA price is at the 51 level of the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. Currently, the price bars are above the moving averages, indicating that the market may resume its upward movement. The moving averages of the 21-day line and the 50-day line are sloping south, indicating a downtrend. ADA price is below the 20% area of the daily stochastic. Cardano is now in the oversold region of the market.

ADAUSD_(Daily_Chart)_-_JAN_19.png

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?

The price of Cardano has been on a downward trend after rejecting the high at $1.60. The price of the cryptocurrency could continue to decline if it falls below the moving averages. Meanwhile, the price completed a downtrend on January 18. A retraced candle tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of 1.618 or the level of $1.28.

ADAUSD_(2_Hour_Chart)_-_JAN_._19.png

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.

Source link

Join Us For LU

Leave a Comment