Cardano price increases risk of sharp decline as ADA support weakens
|- Cardano price revisits the crucial $1.77 resistance level.
- ADA completes 38.2% Fibonacci retracement while the uptrend continues.
- A break above $1.77 could drive a further uptrend.
Cardano price is gaining traction as a bullish candlestick pattern signals a potential of a reversal in the downtrend. The price has already achieved a 38.2% corrective rebound, and now it's continuing north. Despite the bullish signs ADA price remains at risk if the market fails to slice through major resistance.
Cardano price completes 50% Fibonacci retracement
Cardano price started a fresh recovery from the $1.58 support zone to trade at $1.74. The formation of a Doji candle signals a lessening in selling pressure and marked the beginning of a rebound. The RSI and Stochastic indicators have fallen to the oversold zone, signaling investors will probably jump into the market to buy cheaper ADA tokens.
ADA coin has already completed a 38.2% Fibonacci retracement at the $1.74 mark, and now it's consolidating under the 50% Fibo level at $1.77. There's also a crucial downward trend line forming on the 12-hour chart, which is acting as a major hurdle at $1.77, giving bulls a hard time.
Cardano seems to be forming a bullish engulfing candle on the 12-hour chart while the RSI and stochastic have started coming out of the oversold zone. These technical tools indicate a potential upswing is in progress. Thus, a spike in demand could help ADA to penetrate through $1.77 and complete a 61.8% Fibonacci retracement at $1.81. Continuation of the uptrend can see ADA price reach to the 78.6% Fibo level at $1.87.
Cardano 12-hourly chart - Fibonacci retracement in play
At the moment, the sixth-largest cryptocurrency by market cap is trading with a slight bullish bias. ADA has formed a Doji, followed by a hammer candle, signaling a bullish reversal. It is worth noting that a rejection from the $1.77 level could open further room for selling until the 38.2% or 23.6% Fibonacci retracement levels at $1.72 or $1.66, respectively. Breaching this support level might extend the downtrend until $1.59.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.