ADA Technical Analysis: Will ADA Buyers Halt the Downtrend At $1?

Key technical points:

Past Performance of ADA

ADA coin price projects a downfall from the $1.20 mark due to the double top formation with a neckline at $1.13. The bearish fallout comes with the 10% fall on 6th April, results in a freefall below the 100 and 50-day EMA, and sents the price closer to the psychological barrier of $1. The bearish fallout accounts for a 16% decline within three days.

Source-Tradingview

ADA Technical Analysis 

ADA coin price teases a potential inverted head and shoulder pattern in the daily chart as the price reaches $1. However, closing below $1 will sabotage the bullish pattern and result in a downtrend continuation.

A flat trend develops in the 50-day EMA after the bullish reversal due to the recently increased selling activities. Moreover, the price failed to sustain above 100 and 50-day EMA, reflecting a solid growth underlying bearishness.

RSI Indicator: The RSI slope cracks under the 14-day average after consolidating near the overbought boundary for days. The bearish trend brings the RSI value under 50%, reflecting a nearly oversold status. 

MACD Indicator: The MACD and signal lines continue the downtrend and increase the negative histogram intensity after the bearish crossover. Hence, the indicator gives a sell signal. 

In a nutshell, the ADA technical analysis highlights the possibility of an inverted head and shoulder pattern.

Upcoming Trend 

ADA coin price will complete the inverted head and shoulder pattern if a reversal occurs at $1. However, a breakout is not guaranteed but will result in an upside rally of 30% to the $1.6 mark.

Contrary to the bullish opportunity, closing below $1 will nullify the uptrend possibility and result in a decline to the $0.85 mark, accounting for a 15% fall.

Support Levels: $1 and $0.85

Resistance Levels: $1.2 and $1.6