Cardano (ADA) price jumped out in a fantastic up move as the bulls moved above the moving averages; however, buyers face an initial hurdle at the $1.00 resistance. Resistance was at $1.00, which was the critical support level before the price crash on Jan 22.
However, if the buyers recapture the $1.00 price level and maintain the bullish momentum, ADA Cardano price will rally to $1.10 and $1.20 as buyers pushed the cryptocurrency up today. $1.00, but faced rejection.
According to the price indicator, the market has reached the overbought zone, therefore, the price of ADA is likely to decline. On the upside, ADA/USD will continue the current uptrend if the price bounces back and finds support above the moving averages. On the contrary, the cryptocurrency will be forced to move inside the trading range if the price falls below the 50-day moving average.
Cardano Index Analysis
Looking at the recent uptrend, ADA Cardano price rose to the 60 level of the 14-period RSI, this indicates that Cardano will continue to rise, as Cardano ADA Cardano price has now risen above the moving averages, indicating a possible bullish movement, especially that Cardano is greater than 80% of the daily stochastic but the digital currency can fall as the sellers appear in the overbought zone.
Key resistance areas: $3.00, $3.50, $4.00
Key Support Areas: $2.50, $2.00, $1.50
What is the next step for Cardano?
On the 4-hour chart, ADA Cardano price is trending up. The price of the cryptocurrency is forming a series of ups and downs as it reached a high of $1.00 but failed to continue the uptrend.
In the same context, the retracement candle on March 19, which was tested at the 50% Fibonacci retracement level, confirmed the upside.
The pullback indicates that Cardano ADA will rally to the 2.0 Fibonacci extension level ($1,009), but the price action shows that Cardano has reached the 2.0 Fibonacci extension level. However, the uptrend may not continue as the market reaches overbought territory.