After increasing in price by over 30% since the start of November, ADA appears to have found a local top.
Key Support levels: $0.35, $0.32
Key Resistance levels: $0.38
1. ADA Rally Comes to a Pause
The resistance at $0.38 has put a stop to the current rally, at least momentarily. Sellers have returned and they appear eager to take some profit after a fantastic performance by ADA this month.
2. Cooldown Expected
Should this pullback turn into a more significant correction, then Cardano could fall to the key supports at $0.35 or even lower to $0.32. Regardless, a correction is normal considering this most recent rally.
3. Bearish Divergence on RSI
The RSI is showing a clear bearish divergence on the daily timeframe. This supports a more significant pullback before ADA can explore higher levels.
Bias
The bias for ADA is bearish right now.
Short-Term Prediction for ADA Price
The price could fall to $0.35 or lower before buyers become interested again. Best to allow this correction to pass before considering your next move.
Hot Take: What’s Next for ADA?
After an impressive rally, ADA seems to have hit a temporary roadblock at the $0.38 resistance level, leading to a potential pullback towards the key support levels at $0.35 and $0.32. The bearish divergence on the RSI suggests that further correction may be necessary before ADA can resume its upward trajectory.
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