Cardano Is Stuck At $0.36 And Is In An Overbought Zone

Date:

Jan 18, 2023 at 10:38 // Price

Cardano is bouncing below the $0.36 resistance level

Cardano (ADA) price has continued to rise, reaching a high of $0.37.

Cardano price long-term forecasts: bullish

The upward momentum has remained stationary below the $0.36 resistance level. Since January 14, the altcoin has struggled to gain ground at $0.36. As the market entered an overbought area around $0.37, the Cardano price reached bullish exhaustion. The historical price level for November 10 at this point is $0.37. On November 10, buyers failed to maintain the positive momentum, which led to a downward movement. On the upside, further upside is unlikely as the market is already overbought. However, Cardano is likely to lose ground. First, the price could fall to $0.29, the breakout level. If the $0.29 support is lost, the altcoin will fall even further, to a low of $0.24.

Cardano indicator analysis

Cardano is still trading at the 75 level of the Relative Strength Index for the 14 period and is in an overbought area. Once sellers enter the overbought area, selling pressure will resume. The price bars are above the moving average lines, indicating that the price has risen. Above the stochastic value of 40 on the daily basis, Cardano is in a bullish momentum.

ADAUSD(Daily Chart) - January 18.23.jpg

Technical indicators 

Key resistance zones: $1.00, $1.20, $1.40

Key support zones: $0.60, $0.40, $0.20 

What is the next move for Cardano?

The bullish momentum has weakened since the January 14 spike. Currently, Cardano is bouncing below the $0.36 resistance level. At $0.37, the bounce has entered an overbought area. Given the altcoin’s overbought condition, further price movement is unlikely. If the altcoin falls below the moving average lines on the 4-hour chart, the selling pressure will increase again.

ADAUSD(4 Hour Chart) - January 18.23.jpg

Disclaimer. This analysis and forecast are the personal opinions of the author and 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 in funds.

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