Coinidol.com: Cardano Slumps Above Its Key $0.38 Support

Cardano (ADA) has lost its bullish momentum, falling below the 50-day SMA support.

ADA price long-term forecast: bearish

The cryptocurrency is currently trading above the 21-day SMA support but below the 50-day SMA barrier. In other words, the price is trapped between the moving averages. ADA has dropped to a low of $0.386 as it bounces between the moving average lines. If the bears breach the 21-day SMA support, ADA could fall back to its previous low of $0.330.

In contrast, if buyers keep the price above the 50-day SMA barrier, ADA will rise and return to the earlier highs of $0.44 and $0.48. Meanwhile, the price has remained relatively stable within its narrow range.

Technical Indicators

• Key Resistance Zones: $1.20, $1.30, and $1.40

• Key Support Zones: $0.90, $0.80, and $0.70

ADA price indicators analysis

The price bars have fallen between the downward-sloping moving averages. The decline has been sluggish due to the formation of Doji candlesticks. On the 4-hour chart, the price bars are positioned below the horizontal moving average lines.

What is the next move for Cardano?

Cardano is in a sideways trend after rebounding above the $0.38 support level on January 8. The cryptocurrency is currently trading in a narrow range, above the $0.38 support but below the $0.40 high.

Now, the altcoin is approaching the current support level of $0.38. If this support is maintained, the price range will remain unchanged. If the altcoin breaks below the current support level, it will fall to a low of $0.33.

Disclaimer. This analysis and forecast are the personal opinions of the author. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coinidol.com. Readers should do their research before investing in funds.