Chart by TradingView
ADA failed to remain above 40 cents, and bears took over in the last few days.
Key Support levels: $0.38, $0.35
Key Resistance levels: $0.40, $0.44
With buying momentum lost, ADA fell back to the key support at 38 cents, and bulls will have a difficult time trying to defend this key level due to low interest from market participants.
The resistance is at 40 cents and has rejected ADA’s attempt at a breakout last week. The price has also formed a head and shoulders top pattern, which is bearish.
Trading Volume: The volume has been declining steadily over the past few days. This has to change if ADA is to hold at the key support.
RSI: The daily RSI fell under 50 points and, in the process made a lower high.
MACD: The daily MACD is bearish, and its histogram is making lower lows. The MACD moving averages are also expanding downwards, which shows that momentum favors sellers right now.
The bias for ADA is bearish.
It is critical for buyers to defend the support at 38 cents. Failing to do so could mean ADA might go to 35 cents next in search of support.
