Cardano Fluctuates Between $1.18 and $1.45 as it Approaches the Oversold Region

Cardano (ADA) continues to be in a downtrend as the market has hit a low of $1.25. The cryptocurrency's price is unstable as it resumes its downward correction after the December 4 plunge.

The December 4 plunge sent the crypto to a low of $1.18, but buyers pushed the altcoin to a high of $1.45. Over the past week, ADA/USD has fluctuated between $1.18 and $1.45. Today, the correction continues as the altcoin approaches support at $1.18. 

Cardano could fall further if sellers break through support at $1.18. This would send the altcoin down to the previous low at $1.02. Similarly, the uptrend will resume if the price breaks the resistance at $1.45. This will send the price of ADA to $1.70. The cryptocurrency will come out of the downward correction when the upward momentum goes beyond the $2.20 high.

Cardano indicator analysis

ADA is at level 35 on the Relative Strength Index for period 14. The cryptocurrency is in the bearish trend zone, indicating a possible decline in the cryptocurrency. The moving averages of the 21-day and 50-day lines are sloping south, indicating a downtrend. ADA/USD is below the 25% area of the daily stochastic. This suggests that selling pressure has reached bearish exhaustion. 

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 is in a downtrend but fluctuating between $1.18 and $1.45. Meanwhile, on October 27, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that ADA will fall to the Fibonacci extension level of $1.618 or the $1.09 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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