Chart by TradingView
ADA took full advantage of the market sentiment and managed to return on the short-term uptrend.
Key Support levels: $0.45, $0.38
Key Resistance levels: $0.50, $0.55
With this latest increase in price, ADA has reclaimed the old support level at $0.45 and is now well on its way to test the resistance at $0.50. If successful, this would open up the level to higher levels, although, given the overall macroeconomic outlook, market participants need to remain cautious.
Trading Volume: The volume is stable and favors buyers. If it picks up as the price increases, this would be a significant bullish signal.
RSI: The daily RSI made a higher high and is above 50 points. As long as buyers remain in control, ADA should perform well.
MACD: The daily MACD turned bullish in the past few days, and momentum improved significantly, as shown by the histogram.
The bias for ADA is bullish.
Considering the current developments, all eyes are now on the key resistance levels at $0.50 and $0.55. If ADA manages to break above these targets, then the price could even test the top of this channel at $0.66. The cryptocurrency has consolidated in this large range since May, and a breakout would be a major change in the market structure.
