ADA price consolidates gains following the previous two sessions of buying momentum. ADA tested the psychological $1.0 mark after nearly three weeks. An acceptance above the mentioned level on a daily basis will set the further upside directional bias.
- ADA’s price tested multi-week high on Wednesday.
- A decisive close above $1.0 will bring $1.40 into play.
- Strong volumes along with momentum oscillators lay the foundation for another leg-up.
ADA price face upside resistance near $1.0
On the daily chart, the ADA price is facing an upside barrier near the psychological $1.0 mark. A daily close above the session’s high will ensure the continuation of the upside momentum. The asset is trading in a short-term trading range of $0.78 and $1.0 for more than a month. Thus, making this range a crucial trading zone. However, the formation of a ‘rounded’ bottom pattern limited the downside risk for ADA.
ADA price surged almost 28% from the lows of $0.78 since March 12 to the swing highs of $1.0. This also marks the formation of a ‘double top’ pattern, a bearish reversal formation. A resurgence of buying pressure is a prerequisite to pushing the price into a higher trajectory.
The first upside target is placed at the horizontal resistance level of $1.20. Next, market participants will keep their eyes on the highs of January 20 at $1.42.
On the flip side, a fall below the session’s low of $0.95 will invalidate the bullish outlook for the asset. An intensified selling pressure would further explore the $0.80 horizontal support line.
As of press time, ADA/USD trades at $0.98, up 0.81$ for the day. The eighth-largest cryptocurrency by market cap holds the 24-hour trading volume at $1,865,621,732.
Technical indicators:
RSI: The daily Relative Strength Index is placed strongly above the average line at 61.
MACD: The Moving Average Convergence Divergence attempted to move beyond the central line. An uptick in the indicator will strengthen the bullish outlook.
OBV: The On Balance Volume showed conviction in the current price action while moving out of 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/cardano-price-prediction-ada-price-aims-for-1-40-next-on-a-daily-close-above-1-0/