ADA’s bullish trajectory remains intact from a long-term perspective. Hence, it is still undergoing correction as it faces a crucial support line. Failure to regain strength may result in a serious crackdown.
Last Thursday, ADA found support (at $0.55) above a crucial ascending trendline after witnessing drawbacks for three weeks. It stayed calm for days and bounced back.
That bounce brought a small relief in the market and the price increased to $0.62 yesterday. It initiated sell from that price level and slipped to a daily low of $0.575, retesting this crucial trendline. A rejection occurred the price remained weak on the daily outlook.
If the selling volume increases in the coming days, we may see a weekly close under this crucial trendline for the first time in four months. That will confirm a broader correction if that comes into play.
Looking at the price chart, the daily volume indicator has been on a steady fall since March – revealing a substantial amount of volume outflow in the market. We may see more drops if the indicator continues to decline.
Currently, there’s no sign of strength in the market. A notable increase above yesterday’s high should bring the bulls back on track. For now, the market is under the bears’ radar.
ADA’s Key Levels to Watch
Source: Tradingview
A weekly close below this crucial trendline could dip the price to a low of $0.54 and $0.50. The main target support for such a crackdown would be $0.45.
If the price respects this trendline with a strong bounce above the $0.63 resistance level, the next recovery level to watch would be $0.68 and $0.735, followed by a potential break-up.
Key Resistance Levels: $0.63, $0.68, $0.735
Key Support Levels: $0.54, $0.50, $0.46
- Spot Price: $0.59
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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