Cardano holds above $0.40 despite sellers’ pressure

Cardano holds above $0.40 despite sellers' pressure

The price of Cardano (ADA) has been trading below the moving average lines and is currently engaged in a sideways pattern.

Long-term pricing estimates for cardano are pessimistic.

Since the 19th of August, trading in ADA/USD has been compelled to take place below the line indicating the moving average. There were two separate attempts by purchasers to keep the price above the moving average lines, but both of these attempts were unsuccessful at the high point of $52.

Buyers have been unable to sustain the price of ADA above the moving average lines for the past four days, which has resulted in the price being volatile above the $0.43 support level. On September 17, buyers were able to break past the 21-day line simple moving average (SMA), but they were met with resistance at the 50-day line simple moving average (SMA). If buyers are successful in pushing through the resistance levels located around $0.52 and $0.60, then Cardano will return to its prior highs of $0.70 and $0.90. To the downside, sellers will attempt to drive the price lower, maybe below the support level of $0.40. ADA If the current support is breached, the price of USD/USD will go all the way down to $0.33.

Cardano indicator analysis

At the moment, the ADA holds the position of level 43 for period 14 on the Relative Strength Index. Cardano is currently trading in a zone that indicates a downward trend, which makes the alternative cryptocurrency vulnerable to price erosion. The price of Cardano is currently below the 50% area, as indicated by the daily stochastic indicator. The ADA/USD pair is currently exhibiting bearish momentum, moving in the downward direction. A downward trend is indicated by the fact that the simple moving average of the 21-day line and the simple moving average of the 50-day line are both sloping southward.

Indicators of a Technical Nature

Key resistance zones: $0.60, $0.70, $0.80

Important support zones are located at $0.50, $0.40, and $0.30.

What action will Cardano take next?

Cardano’s price is demonstrating a downward trend on the 4-hour chart as it encounters resistance at the 21-day simple moving average line. During this time, a retraced candle body on the downtrend that began on September 13 attempted to test the 61.8% Fibonacci retracement level. The retracement gives the impression that ADA will drop to the level of the Fibonacci extension, which is 1.618, which translates to $0.42.