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.
Technical Indicators
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.
Bias
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.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Source: https://cryptopotato.com/cardano-price-analysis-after-a-volatile-week-ada-is-heading-towards-critical-support/