Despite the ADA falling towards support, it has formed a bullish divergence, indicating possible upward movement in the near future.
Key Support levels: $1.2, $1
Key Resistance level: $1.3, $1.5
ADA retested the support at $1.2 yesterday, making a lower low. However, the RSI has made a higher low, signaling a bullish divergence. So long the key support level holds, ADA has a good chance of getting back into the uptrend and maybe attempting to break out of the resistance at $1.3.
Technical indicators
Trade volume: The volume is low, but this is typical for weekends. The next few days of the week could bring some much needed volatility back to ADA.
RSI: As mentioned above, there is a bullish divergence at the daily RSI. This is a positive sign for buyers and may give them the momentum needed to escape from this area and break higher.
MACD: The MACD on the daily period made a cross to the positive side last week. The bulls have maintained this momentum so far despite the support level retest. If this continues, ADA will likely attempt a rally soon.
Bias
The current bias is neutral. If ADA can break above the key resistance at $1.3 and close above it then the bias can change to bullish.
Short-term prediction for the ADA price
The price of ADA is just above key support at $ 1.2, and it will likely stay here until the momentum changes; of course, it also depends on the overall dynamics of the crypto market. The indicators support the option to retarget the resistance of $ 1.3, but this has yet to be seen over the next week or so.
