Cardano (ADA) Is in a Fresh Uptrend, Pauses after a Minor Retracement
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Cardano (ADA) Long-Term Analysis: Bearish
Cardano’s (ADA) price has recovered from the bearish trend and it pauses after a minor retracement. The cryptocurrency fell to the low of $1.20 support and resumed consolidation above it. After days of consolidation, ADA rebounded above the current support to reach the high of $1.49. The bullish momentum has broken above the 21-day line moving average but failed to reach the 50-day line moving average. The upside momentum could have continued if price breaks above the 21-day and the 50-day lines moving averages. Nonetheless, after a minor retracement, the upward move has resumed to the upside. Buyers will have to push Cardano above $1.80 to be out of downward correction.
Cardano (ADA) Indicator Analysis
The recent upward move has pushed Cardano to level 48 of the Relative Strength Index for period 14. It indicates that Cardano is still in the downtrend zone and it is below the centerline 50. The crypto’s price is above the 21-day line but below the 50-day line moving averages. It indicates that the altcoin is likely to fluctuate between the moving averages. The cryptocurrency is below the 80% range of the daily stochastic. The stochastic bands are sloping upward indicating an upward 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 has recovered from the downtrend and it pauses after a minor retracement. Although, the upward move is facing rejection at the recent high. Meanwhile, on December 22 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Cardano will rise to level 1.272 Fibonacci extension or $1.4107. From the price action, the ADA price has retraced to the support above the 21-day line moving average. A fresh uptrend is likely to commence.
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