ADA price opened lower and continued to hover near the lower range. For the past two sessions, the upside is capped near $1.25. The current price action suggests some retracement before the continuation of the upside momentum.
- ADA price trades in a very tight range with no meaningful price action.
- Bearish RSI divergence on the 4-hour indicates impending selling momentum,
- The upside is capped near $1.25 on the bigger time frame.
As of publication time, ADA/USD is trading at $1.91, up 0.25% for the day. The seventh-largest cryptocurrency by market cap is holding the 24-hour trading volumes at $1,655,837,661 with a decline of more than 275%.
ADA looks for a retracement
On the 4-hour chart, the ADA price is consolidating near the $1.25 level as it remains pressured to cross above the upside barrier. The formation of consecutive candlesticks indicates indecision among traders. A move below $1.16 might create a short-term bearish impulse in the asset.
On moving downward, the price will meet the first lower target at the 50-day EMA (Exponential Moving Average) at $1.10.
A resurgence in selling pressure would result in the break of $1.10 on the daily basis. In that scenario, the ADA price would dive straight to the psychological $1.0 level.
On the contrary, if the price is managed to sustain the sessions high then it will continue with the prevailing trend. Investors would find an immediate upside target at $1.30.
RSI: The 4-hourly Relative Strength Index shows a negative divergence in accordance with the price since March 24. Any downtick in the indicator would strengthen the bearish outlook for the price.
MACD: The Moving Average Convergence Divergence still holds above the mid-line but with the receding bullish momentum.
Trading volume: The On-balance volume indicator slips below the overbought zone suggesting the supply pressure with an increase in the price.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.