Support and resistance levels
• Key Support Levels (30m/4h Time Frame):
1. $0.9171: Recent low (strong support for possible bounce)
2. $0.9500: A psychological level, just above the recent low, potentially a short-term support zone.
3. $0.9200: Slightly above the 24-hour low, it could act as short-term support if the price declines further.
• Key resistance levels (30m/4h timeframe):
1. $1.0592: 24-hour high, clear resistance point from recent price action.
2. $1.00: Round number resistance, traders often react to this level, especially in the short-term time frame.
3. $1.05: Just above $1.00, another potential resistance zone that traders will be watching for a breakout.
30-minute (30m) chart analysis:
On the 30-minute chart, ADA is consolidating after the recent decline, and we can observe the following:
• Current Price Action: ADA is currently fluctuating around the $0.9690 level. The price is moving in a range between $0.9500 and $0.9700, indicating consolidation.
• Support Zone: $0.9500 is an immediate support level, with a potential bounce if the price declines further. If this level is breached, $0.9171 will be the next strong support zone.
Resistance Zone: On the upside, $0.9700 to $1.00 is an immediate resistance area. A break above $1.00 could set the stage for a retest of the $1.05 level.
• Market sentiment: The market is in a slightly bearish momentum, as evidenced by the recent 5.91% drop in the last 24 hours. This indicates that traders are cautious, and confirmation of a break of the $1.00 resistance will be needed to change market sentiment.
4-hour (4h) chart analysis:
On the 4-hour chart, the market shows a broader view of ADA’s price action over the past few days. Here is the analysis:
• Price Movement: ADA is hovering between $0.9171 (24-hour low) and $1.0592 (24-hour high). The price recently tested support at $0.9171, and it showed some recovery towards the $0.9500 level.
Support Level: $0.9171 The support has held up well so far, and it could continue to act as a solid support zone for the next few days. If the price breaks below this level, there is a risk of further downside movement.
• Resistance Level: $1.00 is a key psychological level, and if ADA pushes above this resistance, it could signal the start of a short-term uptrend. A break above $1.05 would open the door to a potential rally.
• RSI (Relative Strength Index): The RSI on the 4-hour chart indicates that ADA is near oversold conditions, suggesting that there may be a possibility of a short-term bounce or reversal if the price stays above the $0.9171 support.
Trade Setups and Market Outlook
1. Bearish scenario: If ADA fails to hold above $0.9500 and falls below $0.9171, we could see a further decline towards $0.85 or even lower.
2. Bullish scenario: A break above the $1.00 level would indicate a bullish breakout, with the next resistance being $1.05 and then $1.10.
3. Range Bound: If ADA remains stuck between $0.9171 and $1.00, it could stabilize for the next few hours.