ADA price opened lower and continued to hover near the lower range. For the past two sessions, the upside is capped near $1.25. The current price action suggests some retracement before the continuation of the upside momentum.
- ADA price trades in a very tight range with no meaningful price action.
- Bearish RSI divergence on the 4-hour indicates impending selling momentum,
- The upside is capped near $1.25 on the bigger time frame.
As of publication time, ADA/USD is trading at $1.91, up 0.25% for the day. The seventh-largest cryptocurrency by market cap is holding the 24-hour trading volumes at $1,655,837,661 with a decline of more than 275%.
ADA looks for a retracement
On the 4-hour chart, the ADA price is consolidating near the $1.25 level as it remains pressured to cross above the upside barrier. The formation of consecutive candlesticks indicates indecision among traders. A move below $1.16 might create a short-term bearish impulse in the asset.
On moving downward, the price will meet the first lower target at the 50-day EMA (Exponential Moving Average) at $1.10.
A resurgence in selling pressure would result in the break of $1.10 on the daily basis. In that scenario, the ADA price would dive straight to the psychological $1.0 level.
On the contrary, if the price is managed to sustain the sessions high then it will continue with the prevailing trend. Investors would find an immediate upside target at $1.30.
Technical indicators:
RSI: The 4-hourly Relative Strength Index shows a negative divergence in accordance with the price since March 24. Any downtick in the indicator would strengthen the bearish outlook for the price.
MACD: The Moving Average Convergence Divergence still holds above the mid-line but with the receding bullish momentum.
Trading volume: The On-balance volume indicator slips below the overbought zone suggesting the supply pressure with an increase in the price.
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