Market

ADA could retest the $ 1 support in the next few days

The first week of 2022 has proven to be one of the most bearish weeks of the year for crypto. Just like general sentiment, ADA was unable to resist the downtrend and is slowly falling towards the $ 1 mark.

Major support levels: $ 1, $ 0.8
Key Resistors: $ 1.2, $ 1.5

The USD 1.2 support level did not stop selling pressures during the recent decline. ADA closed the day candle below yesterday and has now moved into the first major resistance. On the flip side, the next support is currently at USD 1 and it appears ADA is ready to retest this important price zone.

Daily ADA / USDT Chart | Source: TradingView

Technical indicators

Volume: When the volume was low, it broke below $ 1.2, likely because it happened over the weekend. It shows the seller’s lack of trust and needs to be re-evaluated on Monday.

RSI: The daily RSI is back below 50 and falling lower. The short-term bias is clearly bearish, but the RSI has yet to hit the oversold area, which is 37 at the time of this writing.

MACD: The MACD has formed a bearish cross and is falling. Support the continuation of the downtrend.

Daily ADA / USDT Chart | Source: TradingView

Perspectives

Price action and technical indicators suggest that ADA will resume its short-term downtrend. If so, it could retest the critical support at USD 1 in the next few days.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.