Cardano Holds above $0.50 Support as Bears Threaten to Short

Cardano Holds above $0.50 Support as Bears Threaten to Short

May 25, 2022

The price of Cardano (ADA) is in a sideways trend after the bulls bought the dips on May 12. Last week, the downtrend eased after it fell to the low of $0.40. On May 12, ADA dipped into oversold territory in the market. This attracted buyers who emerged from the oversold area and pushed prices up to previous highs.

The uptrend was halted at the $0.59 high as sellers were present in the $0.60 resistance zone. Cardano was pushed back from the recent high. Despite the rejection, buyers managed to defend the $0.50 price level. If ADA rises above the $0.50 support, it will break through the $0.59 resistance. The altcoin will continue to rise to the high of $0.90. On the other hand, Cardano will fall and regain the previous low at $0.40 if it loses the current support.

Cardano indicator analysis

Cardano is at level 37 of the Relative Strength Index for period 14. The altcoin is in the downtrend zone despite the upward correction. It is above the 50% area of the daily stochastic. ADA is in an upward momentum, but it was interrupted at the recent high. The 21-day line SMA and the 50-day line SMA are sloping downward, indicating a downtrend. 

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?

Cardano has been consolidating above $0.50 support since May 18. The altcoin risks a decline if the $0.50 support is breached. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall, but will reverse at the level of 1.272 Fibonacci extension or $0.31.

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.

Source: Read Full Article