Having faced rejection once again at $2.96, Cardano's price is feeling the pull of gravity, as it drops to near $2.80, down about 4% on the day.
ADA/USD jumped back towards the all-time highs of $3.026 on Friday, although it appears that the bulls are likely to take a few more attempts before resuming the broader uptrend.
Cardano’s corrective downside could likely be envisioned as short-lived, as the underlying bullish momentum remains intact heading into the September 12 Alonzo hard fork.
The third most favorite crypto coin is up 14% over the week, set to book the sixth straight weekly gain.
After Monday’s record rally, a brief retracement in ADA price was well expected by the market participant before the bulls contemplate the next upswing to conquer fresh lifetime highs.
Looking at Cardano’s daily sticks, the corrective decline has been encountering strong demand at the 61.8% Fibonacci (Fib) Retracement level of a fresh rally from August 9 lows at $1.362 to the record highs, which is seen at $2.389.
Therefore, a daily closing below the latter is likely to provide credence to the reversal from higher levels, exposing a powerful support area around the $2.19-$2.15 region, the confluence of the bullish 21-Daily Moving Average (DMA) and 50% Fib level.
Although, initial support is now marked at the 78.6% Fib level of the same advance at $2.668.
Note that the daily RSI retracement from the overbought region, now at 69.03, suggests that the retreat could likely be a good buying opportunity, as ADA price remains on the track to set new bullish targets.
Should ADA bulls take out the record highs at $3.026 the next relevant hurdle is seen at the 127.2% Fib level at $3.477?
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