Cardano Continues Range-Bound Move after a Price Rebound

Cardano Continues Range-Bound Move after a Price Rebound

November 3, 2021

Today, the price of Cardano (ADA) is moving higher while in a sideways trend. At the time of writing, the cryptocurrency is trading at $2.10. Buyers are trying to push the altcoin above the moving averages.

If buyers push ADA above the moving averages and bulls break through resistance at $2.60, a rally to $3.00 is likely. However, Cardano will continue the downward correction if buyers do not break the recent high. Furthermore, if price action is dominated by indecisive candlesticks with small bodies, the market will continue to range. 

Cardano indicator analysis

The altcoin is at level 51 of the Relative Strength Index of period 14, which means that there is a balance between supply and demand. The price bars are below the 21-day line and the 50-day moving averages line, indicating a possible decline. The moving averages are sloping horizontally, indicating a sideways trend.

Technical Indicators:

Key Resistance Zones: $3.00, $3.50, $4.00

Key Support Zones: $2.50, $2.00, $1.50

What is the next move for Cardano?

On the 4-hour chart, Cardano’s price has started resuming its uptrend. ADA has risen above the $1.95 support after the price broke through the moving averages. The first price target is at a high of $2.15. Meanwhile, the uptrend tested the 50% Fibonacci retracement level on October 28 with a retreating candlestick. The retracement suggests that ADA will rise to the 2.0 Fibonacci extension level or the $2.21 level.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.

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