Cardano (ADA) in an Upward Correction After Falling Below Moving Average Lines
According to cryptocurrency analysts, Cardano (ADA) is currently in an upward correction phase after previously falling below the moving average lines. However, long-term forecasts for Cardano’s price remain bearish.
Key Points:
- The ADA price is encountering resistance at the $0.30 high.
- If buyers surpass this resistance, the ADA price could rise to $0.31.
- However, it is doubtful that the cryptocurrency will continue to rise.
- The daily stochastic indicator suggests that Cardano is trading in the overbought zone of the market.
- If Cardano fails to break the $0.30 resistance or the 50-day line SMA, the ADA price is expected to fall back to the previous low of $0.26.
Cardano Indicator Analysis
Cardano is currently in an upward correction phase, as indicated by its crossing above the Relative Strength Index of period 14 at level 47. However, the price bars are still below the moving average lines, suggesting the possibility of a decline. Additionally, the Stochastic on the daily chart is above the level of 80, indicating that ADA could experience a decline as it is in the overbought area of the market.
Technical Indicators
Key resistance zones for Cardano are at $0.30, $0.35, and $0.40. On the other hand, key support zones are at $0.20, $0.15, and $0.10.
What’s Next for Cardano?
If Cardano is rejected at its current high of $0.30, the price is expected to decline. The overbought market conditions also suggest a potential decline for the altcoin, which is currently in a bearish trend zone. The presence of Doji candlesticks is causing some volatility in the altcoin’s movement.
As of now, ADA has fallen to a low of $0.29, and if it continues to fall below the moving average lines, the decline could accelerate.
Hot Take
While Cardano may be experiencing an upward correction, the overall outlook for its price remains bearish. The resistance at $0.30 and the overbought market conditions suggest a potential decline in the altcoin’s value. Traders should exercise caution and closely monitor the price movements of Cardano in the coming days.
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