ADA analysis – the price is trying to bounce off the bottom of the correction.
1 min readADA continues for the time being sideway and is currently struggling with key resistance falling flag. This potential accumulation zone is on a key export. The $ 1.20 level is long-term point of control. However, the question remains, whether the price can really stay on this export, or will eventually fail and the correction will continue.
The current support is located exactly at the mentioned point of control $ 1.20. Price has tested it 5 times and still maintains it. However, the local highs in the current sideway structure are declining and therefore arose descending triangle. So far, it looks like this triangle should be closed by a bull leg. However, the last maximum was still not overcome.
ADA / USD 4H. Source: TradingViewADA has come across long-term support
The last maximum is at the level of $ 1.31 and if we overcome it, it is possible target $ 1.46. In such a scenario, the breakdown of the correction resistance is confirmed and an accumulation zone and potential the bottom of the whole correction. However, it is questionable how long the price will actually take to bounce back from the bottom and create a new upward trend.
During the last correction ADA had a rather poor performance compared to many highcaps, and the price completely erased the entire previous uptrend. On the other hand, we have the opportunity to buy relatively cheaply, because the price is in the long-term key support area.
