Slight correction, key levels to look out for in ADA

The ADA fell 5% today as it fell on support at the 20-day MA. For the Bitcoin pair, ADA is currently battling the 50-day MA as it consolidates in an ascending triangle.

ADA / USD – Price retests the 20-day MA re

• Key support levels: $ 1.34, $ 1.30, $ 1.20.
• Major Resistance Levels: $ 1.40, $ 1.45 – $ 1.50, $ 1.72.

ADA is consolidating within an ascending triangle pattern that began in late June. The altcoin fell to its June low and found support above the 200-day MA (yellow on the chart) at the $ 1 level. The price has since rallied strongly and formed an ascending triangle.

This pattern usually tends to break out upwards (that’s why it’s called an ascending triangle); However, a downward breakout is still possible. At the time of writing, the price is testing the bottom edge of the triangle.

Earlier this month ADA turned up and attempted a breakout above the triangle. Unfortunately, it failed to penetrate the wall at $ 1.48, which is compounded by the 100 day MA.

Since then, the price has fallen as it fell below $ 1.40 today to find support at the bottom of the triangle ($ 1.34), further reinforced by the 20-day moving average. A falling volume often signals an impending major price movement. If price cannot find support at current levels, the move is likely to be in a downtrend.

Daily ADA / USD chart | Source: TradingView

ADA / USD short term forecast

If the bears can break below the triangle and the 20-day MA (blue line), the initial support will be found at USD 1.30. This is followed by USD 1.20 (July low), USD 1.12 (0.618 Fib retracement) and USD 1.08 (200-day MA – yellow line).

On the flip side, the initial resistance is at $ 1.40. This is followed by a strong resistance area of ​​$ 1.45 to $ 1.50 provided by the 100-day MA, the top of the triangle, and the 50-day MA. If price breaks out of this zone, the next resistance will be at $ 1.72 (0.5 Fibonacci retracement of the entire downward move).

The RSI has fallen below the midline again, suggesting that the bearish momentum may gradually strengthen.

ADA / BTC – The battle between price and the 50-day MA.

• Main support levels: 4160 SAT, 4000 SAT, 3950 SAT.
• Main resistance levels: 4200 SAT, 4400 SAT, 4740 SAT.

ADA also trades within an ascending triangle in the Bitcoin pair. Unlike the ADA / USD pair, ADA / BTC is currently struggling to break out of the top of the triangle and hold above the 50-day MA (4160 SAT).

ADA / BTC recovered from support on 3540 SAT in late June and has now set up new support on 3820 SAT. The price rallied from there in early July, reaching the top of the triangle and the 50-day MA.

Daily ADA / BTC chart | Source: TradingView

ADA / BTC short term price forecast

In the future, the first resistance will be found at 4200 SAT (top of the triangle). This is followed by 4400 SAT, 4740 SAT and 4900 SAT (Extended Fib 1.618).

On the other hand, the initial support is at 4160 SAT (50-day MA). Next is the bottom edge of the triangle, 4000 SAT and 3950 SAT (20 day MA). Further down – support is at 3820 SAT (Fib 0.382).

The RSI is just above the mid-line, which shows that the bullish momentum has subsided. To break above the triangle, the RSI must move up to show that bullish momentum is strengthening.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Cryptopotato

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