Cardano (ADA) has fallen below the moving average lines as buyers failed to hold above the $0.60 resistance zone. After a three-month sideways move, buyers tried to break above $0.60 resistance but were rejected at the $0.58 high.
The cryptocurrency fell to the low of $0.44 and continued to consolidate above it. Nonetheless, Cardano risks another drop to the previous low at $0.40 and if the bears fall below the $0.40 support, the downtrend will resume. On the other hand, if the $0.40 support holds, ADA/USD will resume its movement between $0.40 and $0.60. Meanwhile, Cardano is trading at $0.45 as of press time.
Cardano indicator analysis
ADA is at level 40 of the Relative Strength Index for period 14, indicating that ADA is in the downward movement due to the recent decline. As the price bars are below the moving average lines, the cryptocurrency is at risk of further decline. The cryptocurrency is below the 20% area of the daily stochastic. ADA/USD is currently trading in the oversold zone of the market. Further selling pressure is unlikely. The moving average lines are sloping horizontally, indicating a sideways trend.
Technical indicators
Key Resistance Zones: $0.60, $0.70, $0.80
Key Support Zones: $0.50, $0.40, $0.30
What is the next move for Cardano?
Cardano price has been in a sideways trend for the last three months. According to the analysis of the Fibonacci tool, Cardano has left the downtrend since the May 12 price drop. On May 11 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall to the 1,272 Fibonacci Extension level or $0,358.
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-consolidates-support/