ADA Facing May’s Low, Will It Prevent a Further Decline?


ADA has dropped over the weekend to retest the previous lows recorded in early May. Cardano’s native token is now at a critical point.

Key Support levels: $0.39 

Key Resistance levels: $0.50, $0.60

Following the ongoing negative sentiment, ADA failed to stop the downtrend as the bears pushed the price closer to the next key support at $0.39. On the other hand, the first major resistance is found at $0.50, and a possible reversal will occur if this level gets reclaimed.

ADAUSDT_2022-05-29_12-20-00
Chart by TradingView

Technical Indicators

Trading Volume: Yesterday, the daily candle closed in green and gave some hope that ADA might see a local bottom. However, so far today, there was no continuation, and all eyes are on Monday now.

RSI: The daily RSI is flat and hovers just above the oversold area of 30 points. The bias is bearish as long as it cannot break above 50 points.

MACD: The daily MACD is bullish and is the only indicator that spreads some optimism that maybe the worst is behind us and ADA could recover from these levels.

ADAUSDT_2022-05-29_12-19-42
Chart by TradingView

Bias

The bias for ADA is bearish. If the price moves above $0.50, this bias should be reconsidered.

Related:  El Salvador Isn't Worried About Its Bitcoin Losses

Short-Term Prediction for ADA Price

ADA is in a challenging position, with levels that have not been seen since February 2021. If demand does not return soon to the market, the outlook remains bearish, and ADA could plunge much lower.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: