ADA price extends the previous session’s losses on Monday. The price consolidates near the lower levels as it approaches a crucial bottom reversal pattern. The formation of the ‘Doji’ candlestick suggests a tug of war between bulls and bears.
- ADA price started the session on a lower note but recovered some of the early losses.
- Investors could find some good opportunities near the vital support placed at $0.85.
- Expect a bounce back from the current levels toward $1.10.
As of publication time, ADA/USD trades at $0.89, down 1.72% for the day. The eighth-largest cryptocurrency holds a 24-hour trading volume of $993,413,303 as per the CoinMarketCap.
ADA price consolidates near the support levels
ADA price is in a long-term downside movement since the record highs made in September. However, the price bounced back nearly 35% from the all-time-low of February. Furthermore, the price remains pressured below the 200-day EMA (Exponential Moving Average) at $1.29.
Currently, the ADA price is hovering near the mentioned lower levels. From the daily chart, it can be assumed ADA is under a bullish reversal pattern as a “morning reversal pattern’. To complete this pattern, a daily candlestick above $0.92 would be required.
Next, an acceptance above the highs of April 14 at $0.98 would confirm the reversal of the prevailing trend at least in the short term. Investors would be encouraged to take out the horizontal resistance level at $1.10.
While things look optimistic for ADA price, still a fall below the session’s low would amplify the ongoing selling pressure on the asset. On moving lower, the price would revisit the lows of March 10 at $0.78.
The relative strength index (RSI) trades near the oversold zone below the average line. Any downtick in the indicator would advocates for the bearish outlook.
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Source: https://coingape.com/markets/cardano-price-prediction-ada-price-bounce-back-to-0-90-is-worth-buying/