ADA has recently bounced healthily after the FTX collapse and is now consolidating below a powerful resistance level. This resistance has been significant since it began to form in April 2018 and has acted as both a support and resistance level throughout 2021 and during a descending triangle from May to October 2022. Despite multiple attempts to break through this resistance in the past few days, ADA has been rejected each time, indicating a low probability of breaking through in the near future.
Breaking this resistance will require much more than what ADA has shown in the past two months. It remains to be seen how the day will end, but at the moment, a shooting star reversal candlestick pattern has formed, which is a sign of a potential major reversal and the end of the current bull market.
At this point, it seems that ADA may retest its prior resistance level and may even need to retest its recent low before a new bull market can be established. The overall outlook for ADA appears weak for now, as volume is low and there are no significant signs of buyers that could help break through the resistance. The RSI is in overbought territory, while the MACD is showing some strength.
Also, there is a huge chance for ADA to bounce some more time in this consolidating level before we see some real moves up. Of course, everything will be connected with Bitcoin move. If bitcoin holds its support so will ADA but in case of a failure, ADA will likely retest lows from September 2020 marked with a blue line.
However, if buyers step in and ADA breaks through this resistance level with ease, accompanied by a surge in volume, we could call a bottom for ADA for a long period of time.
Breaking this resistance will require much more than what ADA has shown in the past two months. It remains to be seen how the day will end, but at the moment, a shooting star reversal candlestick pattern has formed, which is a sign of a potential major reversal and the end of the current bull market.
At this point, it seems that ADA may retest its prior resistance level and may even need to retest its recent low before a new bull market can be established. The overall outlook for ADA appears weak for now, as volume is low and there are no significant signs of buyers that could help break through the resistance. The RSI is in overbought territory, while the MACD is showing some strength.
Also, there is a huge chance for ADA to bounce some more time in this consolidating level before we see some real moves up. Of course, everything will be connected with Bitcoin move. If bitcoin holds its support so will ADA but in case of a failure, ADA will likely retest lows from September 2020 marked with a blue line.
However, if buyers step in and ADA breaks through this resistance level with ease, accompanied by a surge in volume, we could call a bottom for ADA for a long period of time.
Consistency is the key of success....
The current situation reflects a lack of strong buying interest, which has contributed to the persistence of the support test. If the lower trendline is breached, it could lead to a substantial decline in ADA's price.