ADA is showing a bullish signal, will it recover?

ADA is currently trading above the strong support area and is forming some bullish divergences, indicating a possible upward move early on.

• Major support levels: $ 1.2, $ 1
• Key Resistance: $ 1.36, $ 1.5

ADA retested the USD 1.2 support yesterday and hit a lower lows. However, the RSI has made a higher low, suggesting a bullish divergence. If this key support holds, ADA has a good chance of reverting to the uptrend and potentially breaking above the $ 1.36 resistance.

Daily ADA / USDT Chart | Source: TradingView

Technical indicators

Trading Volume: The volume is low, but this is typical on weekends. The days of the coming week could bring much-needed volatility for ADA.

RSI: As mentioned above, there is a bullish divergence in the daily RSI. This is a positive sign for buyers and could give them the momentum needed to keep prices up.

MACD: The MACD on the daily timeframe created a bullish cross last week. The cops have been maintaining it so far, despite the support being tested multiple times. If it stays that way, ADA could take recovery action soon.

Daily ADA / USDT Chart | Source: TradingView

Perspectives

The current outlook is neutral. If ADA breaks the critical resistance at $ 1.36 and closes above it, the trend could turn up.

Short term forecast

ADA price is just above the key support at $ 1.2 and can hold above it until momentum changes; Of course, this also depends on the overall dynamics of the crypto market. Technical indicators are currently supporting a retest of the $ 1.36 resistance level.

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