Cardano Hovers above $1.80 Support as ADA Reaches Oversold Region

The price of Cardano (ADA) has fallen below its moving averages, indicating further downside for the cryptocurrency. At the time of writing, Cardano is trading at $1.82.

Today, ADA/USD is falling to the downside. If the price breaks below the support of $1.80 and the downward momentum continues, the market will fall to a low of $1.40. If current support holds against it, ADA will oscillate between the $1.80 and $2.40 price levels. The overriding resistance at $2.40 has not been breached since September 13.

Cardano indicator analysis

ADA price has fallen to the 34 level of the Relative Strength Index for the 14 period. Cardano is in the downtrend zone and below the midline 50. The market is likely to continue to decline. It is also approaching oversold territory. ADA price bars are below the 21-day line and the 50-day moving average line, indicating a possible decline. Cardano has fallen into oversold territory, but buyers are pushing the price above the 25% level.

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, Cardano is in a downtrend as the price falls below the moving averages. Sellers have broken the previous low at $1.90 and are continuing their downward move. Meanwhile, the downtrend from November 19 has shown a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of $1.618 or the $1.66 level.

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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