Cardano Reaches Overbought Region at $1.24, May Face Rejection
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Cardano (ADA) Long-Term Analysis: Bullish
Cardano’s (ADA) price is trading in the bullish trend zone but may face rejection. On March 29, the cryptocurrency rallied to the high of $1.24. The bulls broke the resistance levels of $1.01 and $1.11 but failed to break the resistance at $1.26. Since March 28, buyers have been struggling to break above the recent high. Further upward move is doubtful as the market reaches the overbought region. However, if the bulls break the resistance at $1.26, ADA/USD will rally to $1.60 high.
Cardano (ADA) Indicator Analysis
Cardano is at level 67 of the Relative Strength Index for period 14. ADA price has earlier reached the overbought region at level 72 before falling to level 67. The market is still in the bullish trend zone. ADA is likely to fall as the market reaches the overbought region. ADA is above the 73% range of daily stochastic. ADA is in a bullish momentum but the market is approaching overbought. ADA has a bullish crossover. That is the 21-day SMA crosses above the 50-day line moving average indicating a but signal.
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)?
ADA/USD is in an uptrend as the price breaks above the moving averages but may face rejection. Meanwhile, on April 1 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will rise but reverse at level 1.272 Fibonacci extension or $1.18. From the price action, the market is approaching the level 1.272 Fibonacci extension.
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