The ADA price is under selling pressure as it is unable to move above recent swing highs. Additionally, the highs form a bearish ‘double top’ formation.
- The ADA price is edging lower as it struggles to maintain its upward momentum.
- A break below the ascending trend line would re-instill additional bearish sentiment.
- On the daily chart, the 50-day EMA capped the upside gains.
The price of ADA remains stable.
On the daily chart, the ADA price is facing resistance from the descending trend line drawn from the $1.64 highs. Additionally, after establishing a reliable support zone between $0.80 and $0.78, the price surged 23 percent to $1.19 highs. This was also the point at which the bearish sloping line was breached. However, the ADA buyers lack the conviction necessary to carry forward the gains, resulting in price consolidation. Finally, the price reversed all gains made since April 5, with a total decline of 15% thus far.
At $1.05., the ADA price has sliced through the critical 50-day EMA (Exponential Moving Average). This indicates the asset’s presence of a selling force.
By declining, the ADA price may sever the supply zone between $0.90 and $0.80.
On the other hand, a break above the 50-day EMA accompanied by an increase in buy orders would indicate a lack of selling interest. The first upside resistance level was at $1.10, followed by the April 4 highs of $1.24.
At the time of publication, ADA/USD was trading at $1.03, up 0.35 percent on the day. According to CoinMarketCap, the 24-hour trading volume is $955,507,579.
Indicators techniques:
Daily Relative Strength Index: The daily Relative Strength Index is 45, with a neutral bias. Any decline in the indicator would bolster the bearish case.
MACD: Moving Average Convergence Divergence Divergence indicates that bearish sentiment is gaining strength.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
