Cardano (ADA) Holds above $1.18 Support, Upward Move Likely
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Cardano (ADA) Long-Term Analysis: Bearish
Cardano’s (ADA) price is still in a downward correction but upward move likely . ADA’s price has broken below the moving averages. On December 4 price slump, Cardano fell to the low of $1.18. Since then the market has been consolidating above the $1.18 support. On December 22, the bulls broke above the moving averages as price rallied to the high of $1.60. Buyers could not continue the bullish momentum as the market reached the overbought region. The bulls were repelled as the market fell to a low of $1.20. Today, ADA’s price is consolidating above the $1.18 support. ADA/USD will rally to the next resistance at $2.40 if the $1.60 high is breached. Similarly, the market will decline to a $1.02 low, if Cardano loses the $1.18 support.
Cardano (ADA) Indicator Analysis
The crypto’s price is below the moving averages which indicates a further downward movement of the altcoin. Cardano has fallen to level 40 of the Relative Strength Index for period 14. The altcoin is in the downtrend zone and below the centerline 50. The 21-day SMA and the 50-day SMA are sloping southward indicating the downtrend. ADA price is above the 25% range of daily stochastic. The daily stochastic bands are sloping above the current range because of the sideways move.
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)?
Cardano is in a downward move but upward move likely. Meanwhile, on December 31, downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Cardano will fall but reverse at level 1.272 Fibonacci extension or $1.19. From the price action, the market is consolidating above the Fibonacci extension.
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