ADA USD Price Analysis – August 5
ADA USD rebounds off the $1.000 key level for the second time in six weeks. Its aim once again is to retest the $1.500 resistance level to break beyond it. The market has been having a duel with the $1.500 key level ever since the price soared to the $1.000 price level on the 25th of February 2021. The resistance seemed unbreakable until a breakthrough happened on the 6th of May 2021.
Resistance Levels: $1.500, $1.830
Support Levels: 1.000, 0.700
ADA USD Long Term Trend – Ranging
When ADA made it past $1.5 this year, the price immediately surged upwards. Not even the 1.830 resistance could halt the bullish momentum. After a few days of defending, it bulged for the price to shoot further upwards. Bulls did not stop moving till they ran out of steam at $2.470. This allowed the sellers to step in to plummet the market. In about three days, the coin spiked down to $1.000. This was very sudden, but the price rebounds and was restored but couldn’t go beyond $1.830.
After struggling to break beyond $1.830 unsuccessfully, the coin fell below $1.500 and eventually back to where it started, at $1.000. Since then, ADA has been rebounding from that $1.000 to test $1.500 to break to the upside again. The Bollinger Band has wrapped its borders around the daily candles and between the $1.500 and $1.000 key levels to further make the border impervious, thereby leaving ADA to consolidate.
ADA USD Short Term Trend – Bearish
On the 4-hour chart, the price is still in an uptrend, but it has failed to make a higher high past the upward spike of the 26th of July. Moreover, the Stochastic Oscillator already has its signal lines in the overbought region, having crossed the 80 mark.
All indications point to the fact that we are likely to see a decline set in the market soon, even before the coin reaches the $1.500 resistance. The target will be once again the $1.000 key support.