Cardano Slumps as It Faces Selling Pressure at $0.52
The price of Cardano (ADA) resumed its downward correction after being dumped at the high of $0.52. In the previous price action, buyers pushed the altcoin above the moving average lines as it rallied to the high of $0.52.
Buyers tried to push Cardano to the overriding resistance at $0.60. However, in the last 48 hours, the bears resumed selling pressure at the high of $0.52 as the altcoin fell below the moving average lines.
ADA/USD fell to a low of $0.46 as the bulls bought the dips. Today, the crypto price is trying to break the 21-day line SMA and climb back up. The altcoin risks another decline if it is rejected. ADA will then continue to fall to the lows of $0.45 or $0.40.
Cardano indicator analysis
The cryptocurrency is at level 47 of the Relative Strength Index for the period 14. It is in the downtrend area and could fall further. Cardano is below the 40% area of the daily stochastic. ADA/USD is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are horizontally sloping, indicating a sideways trend.
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’s share price is in a sideways movement. Since May, ADA/USD has moved in a range between $0.40 and $0.60. In the last 48 hours, the altcoin has dropped from the high of $0.52 to $0.46. It could reach the price level of $0.40 again. On the weekly chart, a candlestick tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that ADA will fall but reverse at the 1.272 Fibonacci extension level or $0.394.
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 in funds.
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