For a second week in a row, the RSI indicator is moving below levels of 30, which is an indication that ADA is heavily oversold. In addition, the coin reached a new historically lowest level, by dropping down to the $0.33 level. But, in every situation, there is also a positive side. When investors decide finally to come back on financial markets, with strong buy signals, ADA could be a good bargain. Another positive side is that buying orders started to prevail on the market as of the end of the week, bringing the price of ADA modestly above historically minimum level. At the same time moving averages of 50 and 200 days are not providing much useful information for technical analysis, considering that they are still moving as two parallel lines with clear downtrend.
When the RSI indicator reaches a clear oversold side, in technical analysis it is always a sign that short term reversal is coming. However, currently it should be taken into account that there are generally significantly decreased volumes of trades on the crypto market, which might impact that the short reversal for ADA is postponed, as we have seen during the last two weeks. Certainly, some short movements to the upside might be expected in the coming period, but it could not be a significant one. At least ADA should test $0.35 short term resistance to the upside.
When the RSI indicator reaches a clear oversold side, in technical analysis it is always a sign that short term reversal is coming. However, currently it should be taken into account that there are generally significantly decreased volumes of trades on the crypto market, which might impact that the short reversal for ADA is postponed, as we have seen during the last two weeks. Certainly, some short movements to the upside might be expected in the coming period, but it could not be a significant one. At least ADA should test $0.35 short term resistance to the upside.
