ADA/USD - Correcting towards support at $1.9, will it hold?

Support level: $1.9
Resistance level: $2.4

ADA is in a corrective pattern within a large downtrend channel. Price will likely re-test support at $1.9 before any uptrend will resume. This channel can also be interpreted as a bullish flag, but for that to confirm, we need to break above it and make it support. If that happens our next key resistance is at $2.4.

Indicators:

• Volume: Mostly flat and waning. If this continues, the strength of this downtrend will weaken and allow for a reversal once we approach support.
  
  
• RSI: Falling on daily timeframe, therefore, the short term view is bearish. Wait for a reversal before considering an entry, particularly once we approach support.
  
  
• MACD: Losing strength on daily timeframe and likely to cross on the negative side in the next day or two. Do not enter a long here so long we’re in the channel.

Bias:

Bearish so long we remain in the channel and we fail to break out of it. On weekly timeframe, ADA just did a bearish cross on MACD. This may indicate we will have a bearish trend for some time, particularly if we break under our $1.9 support. Be cautious on taking any longs for that reason and use tight stop losses. Don’t exclude a bounce towards $2.4 if price breaks above this channel, however once there price can be pushed lower again in line with the weekly MACD which remains bearish.

Price prediction for ADA:

Considering ADA had a massive pump this summer to $3, it now finds itself in a correction. This may last a while, so don’t rush to buy until we have good confirmation of a new up-trend. Breaking above our downtrend channel would be a good start towards that at which point we can set some good targets. Right now $2.4 is your best bet.


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