For several weeks ADA was holding strongly to sustain the $0.4 support line, however, during the previous week, the coin did not manage to hold anymore market pressures, so the price reached new historically lowest levels at $0.35. Also, it was a significant move to the downside, considering the high level of selling orders during the whole week.
With the latest drop in price, RSI entered into the clear oversold market area of the charts. If there is something positive in such a move, it is that this is an indication that the market would start with a short price reversal. At the same time, moving averages of 50 and 200 days stayed intact, and continued with their moves as two parallel lines with clear downtrend.
Since the market reached an oversold side, it could be expected for ADA to enter into short price reversal in the coming period. This increases the probability for ADA to revert to the $0.40 resistance line to test it in the week ahead. On the opposite side, ADA will most certainly continue to test $0.35, a new support line.
With the latest drop in price, RSI entered into the clear oversold market area of the charts. If there is something positive in such a move, it is that this is an indication that the market would start with a short price reversal. At the same time, moving averages of 50 and 200 days stayed intact, and continued with their moves as two parallel lines with clear downtrend.
Since the market reached an oversold side, it could be expected for ADA to enter into short price reversal in the coming period. This increases the probability for ADA to revert to the $0.40 resistance line to test it in the week ahead. On the opposite side, ADA will most certainly continue to test $0.35, a new support line.
