The price of Cardano (ADA) is in a sideways trend, but consolidating above support at $1.00. The previous downtrend ended on January 22 after it fell to the low of $0.91. Buyers are desperately trying to bring the altcoin to the previous highs.
Yesterday, the price of ADA was resisted at the high of $1.10. Cardano would have risen to the high of $1.50 if the initial resistance was broken. However, if the bears break the support at $1.00, the market would fall back to the previous low at $0.91. However, further downside is unlikely as indicated by the long tails of the candlesticks. The long tails of the candlesticks indicate that there is strong buying pressure at lower price levels.
Cardano indicator analysis
The ADA price is at level 43 of the Relative Strength Index for period 14, indicating that the altcoin is in a downtrend, but no longer in oversold territory. The market is capable of falling to the downside. The cryptocurrency is above the 80% area of the daily stochastic. This indicates that the price of ADA is likely to fall as it is in the overbought area of the market. The moving averages are sloping downward, 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?
Cardano’s price is in a range. The previous downtrend has elapsed, while the altcoin is once again entering a sideways trend. Cardano’s price action is dominated by a small group of indecisive candlesticks, the doji and spinning tops. Therefore, the current sideways movement could continue for a few more days.
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: https://coinidol.com/cardano-rejection-1-10/