Chart by TradingView
Key Support levels: $1.2, $1
Key Resistance level: $1.3, $1.5
After a significant drop earlier in December, ADA’s downtrend has stopped on the $1.2 support level which has held well so far. Now, the price attempts to break the resistance at $1.3. If the bulls hope to reverse the current downtrend, then a break above this key resistance is essential.
Trading Volume: Volume has been low lately. This gives the bulls a good chance to reverse the downtrend, particularly if the bears lose interest in pushing ADA lower.
RSI: The daily RSI has made a bullish divergence. This is a good sign as it shows that sellers might be getting exhausted.
MACD: The MACD on the daily timeframe is a day away from a bullish crossover. If the bulls can push prices above $1.3 then the MACD will most likely flip to the positive side.
The current bias is neutral. A break above $1.3 can change the bias to bullish, particularly if buyers maintain the momentum.
ADA appears ready for a reversal, but it is too early to call it. If successful in regaining control of the price action, the bulls might be able to recover from the recent declines. However, it’s important to keep a close eye on the market leaders as any weakness from ETH or BTC will like impact ADA negatively as well.
