Last week came with a small recovery as many altcoins went offensive along with ADA, but later faced resistance after testing a key level. The buying stopped and the market resumed selling as volatility shrinks.
ADA has seen a little-to-no movement since the price rejected the $0.83 level during last week’s recovery. However, the price is currently up due to the overnight increase in the global market cap. Other altcoins are also posting gains at the time of writing.
An increase above last week’s high could set a bullish tone in the market but there is a need for a breakout to confirm a trend shift. The December 2024 high is the key level to watch for such a shift. Failure to break that high may result in a sideway move before deciding on the next direction.
However, it is important to note that ADA is still under a retracement phase on the short-term scale. Resuming this phase could bring the price back to the monthly low. An extension from there could reset the price to $0.34, marking a retest level where it initiated a surge last November.
Considering the fast recovery from the early month crash, which showed signs of exhaustion from the bears’ side, a potential trend shift is lurking around the corner.
ADA’s Key Levels to Watch
Source: Tradingview
Above last week’s high lies a minor $0.988 resistance, followed by an important $1.15 resistance – tested in January. A further push from there should see us to the top of $1.326 before exploding to a new high.
Last week’s $0.65 support is still holding firm. A dip below it could roll the price back through $0.56 to the monthly low of $0.50. More losses can be expect if the price breaks lower.
Key Resistance Levels: $0.83, $0.988, $1.15
Key Support Levels: $0.65, $0.56, $0.50
- Price: $0.778
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/cardano-price-analysis-prediction-february-20-ada-remains-bearish-but-a-trend-shift-is-imminent-gains-2-today/