The price of Cardano (ADA) has fallen to a low of $0.59 and has resumed consolidation above current support. Last week, the cryptocurrency fluctuated above the $0.59 support.
Today, the bears are trying to break below the current support. Sellers might not be able to break the current support as the altcoin has reached its bearish exhaustion.
Moreover, ADA is deep in the oversold region of the market. On the downside, the bulls will buy the dips if the bears break below the current support. On the upside, if the current support holds, Cardano will resume its uptrend. The cryptocurrency will rally above the moving averages if the bulls break above the resistance at $0.74 and $0.77. In the meantime, Cardano is trading at $0.59 at the time of writing.
Cardano indicator analysis
Cardano has fallen to level 29 on the Relative Strength Index for the 14 period. Selling pressure will ease or end when the altcoin reaches the oversold region. Moreover, buyers will emerge in the oversold region of the market. Likewise, Cardano is below the 20% area of the daily stochastic. The market has been in the oversold region since April 8. The 21-day line SMA and the 50-day line SMA are down, 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 downtrend has reached its bearish exhaustion. Since May 9, the altcoin has been fluctuating above the $0.59 support, and on April 30, a candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall but reverse at the 1.272 Fibonacci extension level or $0.61.
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-oversold-region/