ADA failed to sustain above $1. Will the bears take over?
Major support level: $0.90
Main resistance level: $1.3
1. Sellers return when ADA falls below $1
At the beginning of the week, there was strong optimism that ADA could sustain above $1 and challenge the resistance at $1.3. But since Tuesday, sellers have returned and managed to push the price below $1. As of this posting, the price of ADA is 92 cents.
2. Reversal of momentum
Similar to the MACD histogram, the daily RSI is also cutting off its highs. This shows weakness and could force Cardano into deeper adjustments. The most important line of defense is at 90 cents, currently acting as support. If this critical level is lost, ADA could then drop to 80 cents.
3. Purchase volume crashed
Purchases peaked in November. Since then, the cryptocurrency has been trading off its highs. This is a bearish trend and the price is also showing it. ADA may struggle to regain bullish momentum until buyers return. Hopefully, the bulls defend the 90 cent price to avoid further losses.
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