The recent sell-off in the crypto market has wiped out the recovery gains of the second week of January. The ADA price has lost around 35% and plummeted to $1 support. This V-top price reversal now targets this bottom support to continue the red rally.
Key technical points:
- The ADA coin shows a lower price rejection candle at $1 support
- The daily-MACD indicator lines project a bearish crossover.
- The intraday trading volume in the ADA coin is $2.8 Billion, indicating a 4.87% gain.
Source- Tradingview
In our previous coverage of Cardano (ADA) price analysis, Coingape mentioned the over-extended retest phase of the double bottom. Eventually, underlying bearishness in the coin resulted in a fakeout and shoved the price below $1.5.
In response to panic selling on the crypto market, the ADA/USD pair continued its downward trend and plunged to the $1 mark. During the weekends, the coin chart gave a glimpse of demand with a lower price rejection candle; however, the overpowered sellers took over and displayed a red candle with a 10% intraday fall.
The technical chart displays the 50 and 100 DMA lines are majorly rejecting any recovery attempt from the buyers. However, as per these DMAs, the overall trend for ADA price is still bearish.
The Moving average convergence divergence shows the MACD and signal lines approaching the midline reverted with a bearish crossover. Moreover, the histograms chart confirms aggressive selling in the market with rising red bars.
ADA Price Breaks Down From $1 Mark
Source-Tradingview
The ADA price shows a bearish breakout from the $1 support in the 4-hour time frame chart. The coin is currently in a retesting phase which displays even higher trading activity compared to breakout candle, hinting at a slight possibility of a fake-out.
Therefore, the crypto traders should wait for price action to signal sufficient supply from the flipped resistance to confirm a fallout.
- Resistance levels- $1.2 and $1.5
- Support levels- $1 and $0.7
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/98247-2/