Can ADA Sustain The Gains Near $0.90?
ADA price drops from the cliff in its recovery after forming a bottoming formation. However, this pullback might be a launching pad to be utilized by the investors to start another upside run. Still, the psychological $0.90 remains a challenge for the ADA buyers to cross.
- ADA price lost substantially on Thursday wiping all the previous gains.
- The recent price action made investors cautious about the fate of the token.
- A bounce-off above $0.90 could trigger a 33% upswing to $1.20.
ADA price prepares for healthy gains
ADA price nosedive since January 18, with a depreciative move of 65%, and tested the lows around $0.70.The downswing was immediately traced by the bulls and recorded a move of 45% to the swing highs of $1.20. However, the bulls are not convinced about the further gains and breached the previous set’s lower range. It briefly tasted $0.73. But, soon makeup to the previously set horizontal support zone.
From the technical perspective, the oversold indicators point to a relief rally of $1.0. If the investors are able to flip the resistance level into support then next it has the potential to take out $1.20.
On the flip side, the ADA price is in a long-term downward trend as it marked all-time highs of $3.09 in September. Since then, every new series formed a new low base for the token.
Talking about the same theory, a failure to hold $0.74, the record low will set the path for a fresh downside in the asset.
Technical indicators:
RSI: The daily relative strength index trades at 42 although above the average line. A sharp spike on Wednesday could not sustain the upside move.
Moving Averages: The price remains pressured below both 200-day and 50-day EMAs.
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.
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