ADA price consolidates gains following the previous two sessions of buying momentum. ADA tested the psychological $1.0 mark after nearly three weeks. An acceptance above the mentioned level on a daily basis will set the further upside directional bias.
- ADA’s price tested multi-week high on Wednesday.
- A decisive close above $1.0 will bring $1.40 into play.
- Strong volumes along with momentum oscillators lay the foundation for another leg-up.
ADA price face upside resistance near $1.0
On the daily chart, the ADA price is facing an upside barrier near the psychological $1.0 mark. A daily close above the session’s high will ensure the continuation of the upside momentum. The asset is trading in a short-term trading range of $0.78 and $1.0 for more than a month. Thus, making this range a crucial trading zone. However, the formation of a ‘rounded’ bottom pattern limited the downside risk for ADA.
ADA price surged almost 28% from the lows of $0.78 since March 12 to the swing highs of $1.0. This also marks the formation of a ‘double top’ pattern, a bearish reversal formation. A resurgence of buying pressure is a prerequisite to pushing the price into a higher trajectory.
The first upside target is placed at the horizontal resistance level of $1.20. Next, market participants will keep their eyes on the highs of January 20 at $1.42.
On the flip side, a fall below the session’s low of $0.95 will invalidate the bullish outlook for the asset. An intensified selling pressure would further explore the $0.80 horizontal support line.
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As of press time, ADA/USD trades at $0.98, up 0.81$ for the day. The eighth-largest cryptocurrency by market cap holds the 24-hour trading volume at $1,865,621,732.
Technical indicators:
RSI: The daily Relative Strength Index is placed strongly above the average line at 61.
MACD: The Moving Average Convergence Divergence attempted to move beyond the central line. An uptick in the indicator will strengthen the bullish outlook.
OBV: The On Balance Volume showed conviction in the current price action while moving out of the oversold zone.
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