Cardano (ADA) In a Downward Correction, Risks Further Decline to $1.18 Low

Cardano (ADA) Long-Term Analysis: Bearish
Cardano’s (ADA) is still trading in a downward correction as it risks further decline to $1.18 Low. The cryptocurrency has earlier made positive moves into previous highs but was repelled. Buyers have pushed the altcoin to the previous highs but could not keep the price above $1.60. Cardano would have been out of downward correction if the bulls have broken above the $1.60 high. The bullish momentum could have extended to the high of $2.40. Today, the bears have pushed the altcoin below the moving averages. The implication is that the altcoin risks further decline to the downside. ADA/USD is trading at $1.31 at press time

Cardano (ADA) Indicator Analysis
Firstly, ADA price is below the 21-day line and 50-day line moving averages indicating a possible downward move. Cardano is at level 44 of the Relative Strength Index for period 14. It indicates that Cardano is in the downtrend zone and below the centerline 50. The altcoin is below the 50% range of the daily stochastic. The market is in a bearish 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)?
Cardano’s upward correction has been terminated as it risks further decline to $1.18 Low. The earlier recovery is doubtful as the altcoin falls to the downtrend zone. Meanwhile, on September 21 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that Cardano will fall to level 1.618 Fibonacci extension or $1.26. From the price action, the ADA price has been fluctuating above the Fibonacci extension.

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