Yesterday the price of Cardano (ADA) fell to a low of $1.02 and then rebounded. This was the previous low from June 22. The bears retested the previous low but were unable to break below it. Today, buyers push ADA to the previous high of $1.50 resistance.
In the prior price action, the bulls were unable to break through $1.50 resistance, leading to a second round of downside. The ADA price could have resumed the upward momentum had the bulls managed to break the $1.50 resistance. Today, the ADA price is correcting higher but faces rejection at $1.16. If the altcoin is rejected at the recent high, the downtrend is likely to head lower again. The bears will have another opportunity to retest the critical support at $1.00. In previous price action, the bulls have defended the previous low at $1.00. However, a break below $1.00 will cause the altcoin to fall further to $0.83 and then $0.68.
Cardano indicator analysis
Cardano has fallen to level 37 on the Relative Strength Index for period 14. It indicates that ADA is approaching the oversold region of the market. Nevertheless, Cardano is above the 60% area of the daily stochastic. This indicates that the market has resumed its bullish momentum.
Major Resistance Levels – $2.00 and $2.20
Major Support Levels – $1.60 and $1.40
What is the next move for Cardano?
Cardano is in a downtrend. Currently it is correcting up, but selling pressure may continue down. Meanwhile, on July 14 downtrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the level of 1.618 Fibonacci extension or the level of $1.09. From the price action, it appears that the market has reached the Fibonacci level, but further downside is likely.
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.