Cardano (ADA) Plunges to $1.20 Low, Risks Further Decline to $1.07

Cardano (ADA) Long-Term Analysis: Bearish
Cardano’s (ADA) price is still in a downward correction as it risks further decline to $1.07 . Since January 18, ADA price has been in a downward move after a rejection from $1.60 resistance. Cardano fell to the low of $1.16 and pulled above the $1.20 support. The altcoin is hovering above the $1.20 support for a possible upward move. The cryptocurrency is in the oversold region of the market. The selling pressure is likely to subside to the downside. Today, a long candlestick tail is pointing to the $1.12 support. The candlestick is describing that the previous low is a strong buying point.

Cardano (ADA) Indicator Analysis
Cardano is at level 44 of the Relative Strength Index for period 14. The altcoin is in the downtrend zone and below the centerline 50. The crypto’s price is now below the moving average which indicates a possible fall. The 21-day SMA and the 50-day SMA are sloping southward indicating the downtrend. ADA price is below the 20% range of daily stochastic. The market has reached the oversold region. The downtrend is likely to subside.

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 correction after the recent price fall but risks further decline to $1.07. The altcoin rallied to an overbought region but was repelled. Meanwhile, on January 20, downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Cardano will fall to level 1.272 Fibonacci extension or $1.23. From the price action, the market is hovering above the $1.20 support.

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