Cardano (ADA) Finds Support above $2.31, Resumes Upside Momentum

Cardano (ADA) Long-Term Analysis: Bullish
Cardano’s (ADA) price has fallen to the support above the 50-day SMA. Since September 7 breakdown, the crypto has been fluctuating between the 21-day SMA and the 50-day SMA. Today, a bullish candlestick is appearing above the 50-day SMA. If ADA price rises above the 21-day SMA, the crypto will be in the bullish trend zone. This will signal the resumption of the uptrend and the crypto will rise to retest the previous high of $3.10. On the other hand, if price faces rejection at the 21-day SMA or levels $2.80, the market will decline and resume a downward correction.

Cardano (ADA) Indicator Analysis
Cardano is at level 46 of the Relative Strength Index period 14. It indicates that ADA is in the downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The altcoin is above the 25% range of the daily stochastic. It indicates that the crypto is in a bullish momentum.

Technical indicators:
Major supply zones: $2.0, $2.20, $2.40
Major demand zones: $1.40, $1.20, $1.00

What Is the Next Direction for Cardano (ADA)?
On the 4 hour chart, Cardano was earlier in a downward move. However, the selling pressure has subsided as the market resumes an upward move. Meanwhile, on September 16 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ADA will fall but will reverse at level 1.272 Fibonacci extension or level $2.37. However, Cardano’s price has reversed after reaching the low of $2.31.

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