Analyst predicts Cardano‘s future.
This Friday (19) Cardano (ADA) started the day with a strong correction. At the time of writing, the cryptocurrency had a sharp drop of 12.54%.
The devaluation occurs after the ADA has reached its historic high of $1.50. Analyst Aayush Jindal points out what investors should expect from this correction.
ADA needs to maintain important support
For Jindal, the correction was intense but not yet disastrous. Despite the sharp drop, an important support is being defended by buyers.
The support in question is the $ 1.20 key support zone. As long as this region is maintained, the upward trend remains present. According to the analyst, Cardano (ADA) is also maintaining the 61.8% Fibonacci retracement level.
That was the level that marked the appreciation of $ 1 to $ 1.47 high. If there is a reversal of the movement below this support and the simple moving average of 100 (4 hours), then there may be a change in trend. In that case, the next support would be the $ 1.05 region.
Upward trend resumption
If there is a decrease in the drop and the Cardano ( ADA ) stabilizes in the support, the discharge process would be resumed. In this case, some resistance must be observed, points out Jindal.
The first immediate resistance is near the $ 1.30 to $ 1.33 zone. As the graph above indicates, this resistance tends to be more peaceful to overcome. However, the big hurdle is close to the $ 1.40 levels.
A clear break above that resistance is likely to open the door to a new high. In this way, the ADA would move towards the $ 1.50 level in the short term.
Already a new fall can lead the cryptocurrency to test again the supports already defined.