ADA holds key support, Will Price retest $1

Last Thursday, ADA fell below key support; however, it quickly recovered. Since then, ADA has staged a pretty decent recovery, with long wicks responding to key support.

• Key Support: $0.85
• Major Resistances: $1, $1.1

During the recent decline, ADA fell below the critical support at $0.85 but managed to regain that level and has been validated as support ever since.

This is a textbook bullish signal, but the key question is whether or not ADA can sustain above the key support level.

ADA/USDT 2-day chart | Source: TradingView

Technical indicators

Volume: Trading volume after the last rally was large. The big question now is whether ADA can sustain it and push the price towards the next key resistance at $1.

RSI: The daily RSI moves higher and closes above 40 forming a higher low. Unless we see a bearish reversal soon, it could be a sign of optimism.

MACD: The daily MACD is still in the red but its histogram has made a higher low. Momentum may soon turn in bulls’ favor after a prolonged correction pushed the ADA below $1.

Daily ADA/USDT Chart | Source: TradingView

Perspectives

ADA’s current trend is neutral. On the upside, ADA needs to break $1 to switch into an uptrend and hold the critical support at $0.85.

Short term prediction

If it holds above the key support, the most likely scenario is that ADA will retest the resistance at $1, which will be crucial for ADA’s next position. At the time of writing, the $0.85 support is well defended by buyers.

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

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