$ADA
🚨 Cardano Price Forecast: Momentum indicators show bearish signs 🚨
Cardano price faced rejection around the daily resistance at $0.84 on May 13 and declined 10% in the next four days. This daily level coincides with the 50% Fibonacci retracement ( drawn from the March 3 high of $1.17 to the April 7 low of $0.51) at $0.84, making this a key resistance zone. However, ADA retested and found support around its 200-day Exponential Moving Average (EMA) at $0.71 on Sunday. At the time of writing on Tuesday, it trades slightly down at around $0.73.
If ADA breaks and closes below the 200-day EMA at $0.71 on a daily basis, it could extend the decline by 12% from its current levels to retest its May 6 low of $0.64.
The Relative Strength Index (RSI) on the daily chart reads 49, slipping below the neutral level of 50, indicating increasing bearish momentum. The Moving Average Convergence Divergence (MACD) indicator also supports the bearish thesis as it showed a bearish crossover on Sunday, giving a selling signal and indicating a downward trend.
However, if Cardano finds support around the 200-day EMA at $0.71 and recovers, it could extend the recovery to retest its daily resistance at $0.84.