Cardano Reaches Oversold Region as Bears Threaten to Short
The price of Cardano (ADA) has bottomed at $2.52 after the recent rejection at $3.0. Today, bearish momentum broke through $2.60 support, which has held for three days.
Prior to the recent decline, Cardano was trading in a price range between $2.60 and $2.80.The current decline has freed altcoin from a range-bound move.
Today, the ADA price is trying to find support above the 50-day line SMA. The upward movement will resume if the 50-day SMA support holds. The altcoin will rise to retest the $3.0 resistance zone. A breakout above the recent high will drive the crypto to $3.65 or $4.0. However, if the 50-day support SMA fails to hold, ADA /USD will drop further to $2.40 low
Cardano indicator analysis
ADA/USD has fallen to the 67 level of the Relative Strength Index of period 14. It indicates that the market is still in the up zone and above the midline 50. ADA has fallen below the 20% area of the daily stochastic. It indicates that the market has reached the oversold area. The market will soon welcome the emergence of buyers in the oversold region.
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 likely to continue a downward move. Meanwhile, on August 24 downtrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the 1,618 Fibonacci Extension level or the $2.36 level. From the price action, it appears that the market is slightly down.
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.
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