Cardano Slumps to Range-Bound Zone, Lacks Buying Power at Higher Price Level

May 06, 2021 at 09:10 // News

ADA price is now fluctuating below the overhead resistance to retest it

For the past week, Cardano’s (ADA) price has been stalled below the $1.400 overhead resistance. ADA price is now fluctuating below the overhead resistance to retest it.


Cardano’s range-bound move has been ongoing since February 26. The bulls have succeeded in breaking above the overhead resistance thrice but could not sustain the bullish momentum. 


For instance, in the previous price action on April 14, the bulls push ADA to the high of $1.550. Nevertheless, the selling pressure was overwhelming as the market dropped sharply to the low of $0.90. Immediately, the bulls bought the dips. This has been the price-action scenario for the past three months. The altcoin is trading at $1.36 at the time of writing.


Cardano indicator analysis


Cardano is at level 55 of the Relative Strength Index period 14. The altcoin is in the uptrend zone and above the centerline 50. The 21-day SMA and the 50-day SMA are sloping horizontally depicting the sideways movement of prices.


ADA_-_Coinidol_(2).png


Technical indicators:  


Major Resistance Levels ‚Äď $1.40 and $1.60




Major Support Levels ‚Äď $0.80 and $0.60


What is the next move for Cardano?


ADA price is likely to make a marginally upward move above the overhead resistance. On April 29 uptrend a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that ADA will rise and reverse at level 1.272 Fibonacci extension or the high of $1.50


ADA_-_Coinidol_2_chart_(2).png


Disclaimer. This analysis and forecast are the personal opinions of the author that 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: https://coinidol.com/cardano-lacks-buying-power/

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