ADA Technical Analysis: Rounding Reversal Rally Ready To Reach $0.75

Key technical points:

Past Performance of ADA

Since the descending triangle breakout in May, the breakout rally in ADA prices took a step back due to the supply dump at $0.60. However, the buyers cushioned the correction phase near the $0.55 mark resulting in an extending bullish rally that broke above $0.60 with a 13% jump today. The bullish engulfing candle closing above the $0.60 mark will signify a bullish breakout of the previous swing high and mark another breakout entry opportunity.

Source- Tradingview

ADA Technical Analysis

After the falling trend last week, ADA prices showcase a surge in intraday trading volume, displaying a flood of new buyers driving the market value higher. Moreover, the bullish reversal brings a rounding bottom breakout entry spot that might further increase the buying pressure. The DMI indicator shows a reversal in DI lines that increases the bullish spread, and the falling ADX showcases may shortly get influenced to restart the uptrend. Likewise, the MACD and signal lines maintain a bullish alignment and continue to approach the zero line. Furthermore, the increasing intensity in the bullish histograms represents a surge in buying pressure.

The RSI indicator shows a bullish surge after the sideways trend near the halfway line and sustains above the 14-day SMA line (yellow). Therefore, the indicator displays a gradual growth of momentum in the ongoing bullish trend. In a nutshell, ADA technical analysis forecasts an uptrend ready to reach the $0.75 mark.

Upcoming Trend

If the buyers sustain the pressure, the uptrend may drive ADA prices above the $0.75 mark to reach the psychological mark of $1. However, a retest phase of the $0.60 mark might shake out high-leverage short-term traders.

Resistance Levels: $0.75 and $1

Support Levels: $0.60 and $0.50