ADA price manages to trade higher after the previous session’s sell-off. However, the bulls lack the conviction to maintain momentum as early gains were erased at the time of writing.
ADA price pressures rise on Thursday with average volumes. A break below the 50-day EMA could point more downward towards $0.95. The momentum oscillators remain bearish and warn of aggressive bidding.
At the time of writing, ADA/USD stands at $1.07, up 2.21% for the day.
ADA price pulls back from higher levels
Source: Trending View
On the daily chart, ADA price is pulling back after testing the session high as the bulls are not convinced to extend gains. Now the price is hovering near the critical 50-day EMA (exponential moving average) at $1.04. This is of great importance to the price as it acted as a support-turned-resistance level.
Now, increased selling pressure could sabotage the reliable support zone, triggering another round of downward movement in ADA price. Also, the price broke the bearish trendline, which extends from the $1.64 highs on March 24, making bulls hopeful of further gains. But after a consolidating phase, the price is about to retest the bearish trendline at $0.95.
A breach below the said level would then take the March 19 lows at $0.85.
On the other hand, if the price manages to surpass the session highs, the prevailing theory would be rejected. In this scenario, ADA buyers should target the recent swing highs around $1.25.
Next, market participants would meet the critical upside hurdle at the 200 EMA (exponential moving average) at $1.29.
RSI: The daily Relative Strength Index stands at 51 with a neutral bias. Any drop in the indicator would indicate more pain in the asset.
MACD: Moving Average Convergence Divergence remains above the midline with increasing bearish momentum.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
About the author
Rekha started out as a Forex market analyst. Analysis of fundamental news and its impact on the market movement. Develop interest in the fascinating world of cryptocurrency later on. Tracking the market using technical aspects. Investigate analysis of the chain to follow the market.
This post ADA Price Challenges 50 Day EMA; Set to test $0.95?
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