While Bitcoin has finally started to look bullish, after having broken through two key resistance points last week ($7,900 and the log resistance around $8,500), we’re going to be looking at ADA today, which shows signs of regaining its former glory.
After a January high of around $1.38 (all prices quoted are in from the ADA/USDT pair on Bittrex), ADA touched a low of $0.124 just last month, before being knocked down from the $0.22 level.
The latest uptrend started off from around $0.14 and has not shown any signs of stopping, beyond small pullbacks at key Fibonacci retracement levels referencing the February peak of $0.44.
As the chart below shows, the first resistance came around the 0.236 level ($0.20) which was promptly breached, and retested for support on April 13 and 14 before ADA set its sights towards the 0.382 level, around $0.25, and touched it on April 16.
The move towards 0.5 was a bit more labored, taking four days to breach, after finding considerable resistance around the $0.27 level, which was retested after a move above 0.5.
Today the price jumped from the 0.5 level and took a run for the magical 0.618 ratio, which it failed to breach at $0.32. However, ADA seems to have found temporary support at the $0.31 and $0.298 price levels.
At the moment, RSI has some breathing space on the 1-hour chart and is not extremely oversold on the daily. The MACD also looks good for now, and the recent price surge was also followed up by volume and the CMF indicator.
As long as Bitcoin continues to stay above $9,300, we could see ADA retry breaching the 0.618 level, after which it could find resistance at the previous trend continuation, at the $0.33 level, followed by key resistances at $0.37 and $0.44 prices.
However, if ADA runs towards $1, we can expect major resistance around the $0.90 level, as January buyers try to exit after watching the significant drop. For now, it all depends on BTC, which could make a splash after crossing the psychological $10,000 barrier.
In case BTC decides to take a dive, ADA will find support between $0.28 - $0.26 levels.
What do you think about ADA? Is it a short-term trade or a long-term hold? Share your thoughts in the comments below.
This article appeared first on Cryptovest
