The price of Cardano (ADA) has made an impressive upward move as bulls broke out above the moving averages. However, buyers face an initial hurdle at $1.00 resistance. The $1.00 resistance was the previous crucial support of the January 22 price drop.
However, if buyers regain the $1.00 price level and maintain the bullish momentum, the price of ADA will recover to $1.10 and $1.20. Today, buyers pushed the altcoin to the high of $1.00, but face rejection. According to the price indicator, the market has reached the overbought zone. Therefore, the price of ADA is likely to fall. On the upside, ADA/USD will continue the current uptrend if the price retraces and finds support above the moving averages. Conversely, the cryptocurrency will be forced to move within the trading range if the price falls below the 50-day moving average.
Cardano indicator analysis
Considering the recent uptrend, the price of ADA has risen to the 60 level of the Relative Strength Index for the 14 period. This indicates that Cardano will continue to move higher. ADA Cardano’s price is now above the moving averages indicating a possible upward movement. Cardano is above the 80% area of the daily stochastic. The altcoin is falling as sellers appear in the overbought zone.
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?
On the 4-hour chart, the price of ADA is in an uptrend. The cryptocurrency price is forming a series of higher highs and higher lows. The altcoin reached the high of $1.00 but failed to continue the uptrend. On March 19, the uptrend was confirmed by a retracement candlestick that tested the 50% Fibonacci retracement level. The retracement suggests that ADA will rise to the 2.0 Fibonacci Extension level or $1,009. The price action shows that Cardano has reached the 2.0 Fibonacci Extension level. However, the uptrend may not continue as the market reaches an overbought area.
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-1-00-high/