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The ADA price has been decreasing since reaching a high of 694 satoshis on Feb. 13. On Feb. 25, it reached the previous breakout level and bounced upward.
Since the bounce, the ADA price has been moving upward. Cryptocurrency trader @acxtrades outlined this movement for ADA, posting its price chart with the caption “No words needed.” Despite the caption, we will still take the time to describe what he meant.
No words needed pic.twitter.com/nWXmuL6owK
— ◇.A.C.X.◇ (@ACXtrades) February 27, 2020
The ADA price broke out from the 540 satoshi resistance area on Jan. 28. It continued to increase until it reached a high of 694 satoshis on Feb. 13. The price has been decreasing ever since.
On Feb. 25, the price returned and validated the breakout level as support. This is a customary movement after breakouts that the majority of the time leads to a continuation of the previous upward move. Hence the caption, “No words needed.”
The positive outlook is increased by the bullish cross between the 50- and 200-day moving averages (MA) on Feb. 3. The recent decrease also served to validate the 50-day MA as support.
As long as the ADA price is trading above these MAs and the support area, its future outlook can be seen as bullish.
So, since we are expecting the price to move upward, let’s see where it is expected to go next.
A look at the weekly chart gives us the long-term resistance areas, the closest of which is found at 780 satoshis. The main resistance area is found at 1,000 satoshis.
In addition, we can see that the weekly RSI has reached the 50-line from above, making it a very suitable level for a bounce. This also confirms that the price is in a bullish trend and will likely continue moving upward toward the resistance areas outlined.
In the short-term, the price has successfully completed a double bottom combined with bullish divergence in the hourly RSI, which has also moved above 50.
This is a sign that the price will continue moving upward, at least in the short-term.
The most likely movement here would be a touch of the 600 satoshi resistance area followed by a decrease. That would create some type of a trading pattern, most likely an ascending support line, that could afterward be used to measure the rate of increase.
To conclude, the ADA price reached a significant support area and bounced upward. We believe the increase will continue and the price will move toward the resistance areas outlined above.
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