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Vikram
Apr 18, 2022
by Vikram

ADA Technical Analysis: Sellers at $1 Crush Bullish Hopes 

ADA
ADA coin price shows a bullish failure to create the inverted head and shoulder and breaking under the $1 mark. Will the downtrend reach $0.75?

Key technical points:

  • The MACD and signal lines continue a downtrend below the zero line. 

  • The ADA coin price has descended by 25% within two weeks.

  • Finally, the 24-hour trading volume of Cardano is $658 Million, marking a 48% rise.

    • Past Performance of ADA

    The freefall in the ADA coin price accounts for a discount of 25% in the past two weeks and the fallout of the critical psychological barrier of $1. In addition, the prices have slipped below the 50-day SMA. The fall undermines the V-Shaped reversal observed in the latter part of March. The price heads lower after retracing fifty days of SMA fallout.

    TradingView Chart

    ADA Technical Analysis 

    ADA coin price action showcases a failed bullish attempt to create an inverted head and shoulder in the daily chart as bears take over trend control at the $1 barrier. Hence, the downtrend continues and warns of the $0.85 fallout. 

    A cluster of EMAs (20, 50, and 100) maintains a bearish formation in the daily chart, with the 50-day EMA providing dynamic resistance and pushing the price lower. Hence, the 50-day EMA provided a crucial part in undermining the bullish pattern.

    RSI Indicator: The RSI slope showcases a downtrend continuation after the downfall from overbought territory consolidated near the halfway mark. In addition, with the falling 14-day SMA, the RSI indicator projects a remarkable growth in underlying bearishness. 

    MACD Indicator: The MACD and signal lines creep under the zero line and in a bearish alignment and project a reprise in the bearish histograms. Hence, the indicator reflects increased chances of a $0.85 fallout.

    In a nutshell, the ADA technical analysis emphasizes the high likelihood of bears breaking the $0.85 support.

    Upcoming Trend 

    The ADA/USD pair shows a phenomenal growth in selling activity as the bulls failed to create the inverted head and shoulder pattern in the daily chart. Hence, the downfall will reach the $0.85 mark. So, short-term bearish traders can find an entry spot at the current market price, expecting a fallout trend touching the $0.75 mark.

    Support Levels: $0.85 and $0.75

    Resistance Levels: $1.00 and $1.20

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    Cardano ADA
    ADA Technical Analysis: Sellers at $1 Crush Bullish Hopes 
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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