The price of Cardano (ADA) has fallen below the previous low of $1.80 as the cryptocurrency has fallen further to a low of $1.67.
Buyers have been defending support at $1.80 for over three weeks prior to the recent breakdown. Cardano was in a downward correction between $1.80 and $2.40, but the bulls failed to break through resistance at $2.40.
Today, ADA/USD is falling lower as sellers have undercut support at $1.80. Selling pressure is likely to extend to the low at $1.40. At $1.40, ADA is deep in oversold territory, which will cause buyers to show up in oversold territory. Cardano will have the opportunity to resume its upward momentum. Support at $140 is the historical price level from August. In August, the bulls broke through resistance at $1.40 and reached the high at $2.80.
Cardano indicator analysis
The ADA price has fallen to the 32 level of the Relative Strength Index for the 14 period. The cryptocurrency is approaching the oversold zone. The price bars of ADA are still below the 21-day line and the 50-day moving averages line, indicating a downtrend. ADA is already below the 20% area of the daily stochastic. This suggests that Cardano has fallen into oversold territory in the market. Buyers will emerge to push prices higher.
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 has resumed its downtrend. Meanwhile, on September 21, the downtrend has seen a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that ADA will fall but reverse at the 1.272 Fibonacci extension level or the $1.61 level. The price action shows that ADA has fallen to the $1.67 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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