by Duo Nine via Crypto Potato
ADA was one of the best performers in the market earlier this week, but as this week is coming to its end, most of the bullish gains are now gone. Currently, ADA is over 81% below its all-time high of $3.09 set just nine months ago.
Key Support levels: $0.50, $0.55
Key Resistance levels: $0.64
After ADA rallied by over 50% on Monday and Tuesday, the price sharply reversed its bullish path, as Cardano got rejected by the key resistance at $0.65. Now ADA’s price is holding above the breakout level at $0.55. If this level cannot hold this correction, ADA likely retests the $0.50 psychological support.
Trading Volume: The volume was substantial earlier this week following the bullish leg but now has dropped again. Buyers seem to have disappeared over the past two days.
RSI: The daily RSI has fallen under 50 points after a strong rally. With a higher high set, ADA may have an excellent chance to break above the 64 cents key resistance if the overall market turns bullish again.
MACD: The daily MACD is bullish, but the histogram makes lower highs. This shows bulls have lost some momentum in the past few days.
The bias for ADA is neutral, as ADA has to break the key resistance to turn short-term bullish.
Short-Term Prediction for ADA Price
If ADA can hold on top of the $0.55 level, then ADA is likely to retest the key resistance of $0.64 and even challenge this level for a possible breakout. Should the price gets rejected, ADA will end up back on the critical support at $0.50, which would place it in a dangerous zone for further declines.
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Cryptocurrency charts by TradingView.