ADA price trades with a negative bias on Friday. The price opened lower but quickly recovered to the session’s high. But, the continuation of the upside momentum seems limited now. The formation of a ‘double’ top formation suggests some profit booking in ADA price.
- ADA price fails to capitalize on the previous session’s gains.
- More downside toward $0.90 near 50-day EMA.
- The momentum oscillators tilt in favor of bears.
ADA price gains look reversible
On the daily chart, the ADA price took some breather near $1.16 after printing gains for four sessions consecutively. But, it seems buyers are not convinced of further upside moments in the asset. Now, a daily close below the session low will bring more downside into play.
If the price moves below the psychological $1.0 level then the first downside target could be found at the 50-day EMA (Exponential Moving Average) at $0.95.
An extended sell-off might expose the horizontal support line at $0.90.
On the contrary, a shift in bullish sentiment followed by a next green candle on the daily chart will bring bulls back into action. On moving higher, the first upside target is placed at $1.20.
ADA price depreciated nearly 100% from record highs of 3.09 made in September.
Next, market participants meet the upside hurdle at the 200-EMA of $1.30.
As of publication time, ADA/USD is trading at $1.09, down 3.21% for the day. The 24-hour trading volume of the seventh-largest cryptocurrency holds at $2,435,677,430 according to the CoinMarketCap.
Technical Indicators:
RSI: The daily Relative Strength Index reached the overbought zone in the previous session. This, suggested market was overheated.
MACD: The Moving Average Convergence Divergence traded above the mid-line with a neutral stance.
Trading Volume: The On Balance Volume indicator holds near the oversold zone.
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.
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Source: https://coingape.com/markets/105936-2/