ADA price manages to trade higher after the previous session’s sell-off. However, the bulls lack the conviction to sustain the momentum as the early gains were erased at the time of writing.
- ADA price print gains on Thursday with average volumes.
- A break below the 50-day EMA could see more downside towards $0.95.
- The momentum oscillators remain bearish warning of aggressive bids.
As of press time, ADA/USD reads at $1.07, up 2.21% for the day.
ADA price retreats from higher levels
On the daily chart, the ADA price retreats after testing the session’s high as the bulls lack the conviction to carry forward the gains. Now, the price hovers near the critical 50-day EMA (Exponential Moving Average) at $1.04. This holds significant importance to the price as it acted as a support-turned-resistance level.
Now, increased selling pressure could sabotage the reliable support zone triggering a new round of downward movement in ADA price. Also, the price breached the descending trend line, which is extending from the highs of $1.64 on March 24 making bulls hopeful for further gains. But, after a consolidating phase, the price is on the verge of retest the bearish slopping trend line at $0.95.
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A break below the mentioned level would next see the lows of March 19 at $0.85.
On the flip side, if the price manages to top out the session’s highs then the prevailing theory would be discarded. In this scenario, the ADA buyers should target the recent swing highs around $1.25.
Next, market participants would meet the critical upside hurdle at the 200-EMA (Exponential Moving Average) at $1.29.
Technical indicators:
RSI: The daily Relative Strength Index reads at 51 with a neutral bias. Any downtick in the indicator would signal more pain in the asset.
MACD: The Moving Average Convergence Divergence holds above the midline with increasing bearish momentum.
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