ADA price fails to sustain the gains of the previous two sessions. The price face multiple rejections near the crucial resistance level at $1.24. However, since March 28 ADA price trading in a very tight range with no clear direction.
- ADA price edges lower with modest losses on Tuesday.
- Expect more downside if close below $1.20 on a daily basis.
- The negative divergence in the RSI on a shorter-time frame warns of aggressive bids.
ADA price trades sideways
On the 1-hour timeframe, the ADA price is trading inside a short-term trading range of $1.16 and $1.24. There is no clear directional bias as traders are advised for ‘Buy on Dip’ and ‘Sell on Rising’.
Currently, the price trades just above the critical 50-day EMA (Exponential Moving Average) at $1.19.But remains pressured to move beyond the session’s highs near $1.21.
Now, if the price falls below the session’s low with above average volumes then it could move toward the lower trading range placed at $1.16.
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More downside cannot be ruled out toward the low of April 1 of $1.10.
On the contrary, if the price manages to stay around $1.20 then it would push the price toward the upper horizontal resistance level at $1.24.
Furthermore, an acceptance of the mentioned level will open the gates for $1.40 next.
As of press time, ADA/USD trades at $1.91, down 0.52% for the day. The eighth-largest cryptocurrency by market cap holds the 24-hour trading volume at $1,287,343,793 according to the CoinMarketCap.
Technical indicators:
RSI: On the 1-hour chart, the Relative Strength Index gives a negative divergence with the price. Any downtick in the indicator would heighten the probability of the downside risk.
MACD: The Moving Average Convergence Divergence holds above the mid-line but with a receding bullish momentum.
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