The first week of 2022 will be one of the most bearish weeks in cryptocurrencies last year. Just like general sentiment, ADA was unable to resist the downtrend and is slowly declining towards the $ 1 mark.
Major support levels: $ 1, $ 0.8
Key Resistance Level: $ 1.2, $ 1.5
Support at USD 1.2 failed to stem selling pressure as the price closed below this critical level yesterday in the daily timeframe. The latter becomes the first major level of resistance. On the flip side, the closest support is now at $ 1 and ADA seems on track to test this critical area.
Chart according to TradingView
Technical indicators
Trading Volume: The volume wasn’t significant when the price fell below $ 1.2, likely because it happened over the weekend. This shows a lack of conviction on the part of the seller and has to be reassessed on Monday.
RSI: The daily RSI continues to slide after hitting a lower high. The short-term trend is clearly bearish, however the RSI has not yet hit the oversold territory and is at 37 points at the time of this writing.
MACD: The MACD is also bearish after the histogram and moving averages were crossed to the negative side last Wednesday when the crypto market sell-off began. Since then, the bearish momentum has only intensified and there are no signs of reversal yet. Because of this, ADA will likely be testing the $ 1 level.
Chart according to TradingView
Bias
The current bias is bearish.
Short term forecast for the ADA price
The support at USD 1.2 failed to stop the negative momentum that has only increased in the past few days. As mentioned above, ADA needs to hold the $ 1 mark as it is an important psychological support that buyers need to defend. If nothing significant happens, we can assume that ADA will test this critical level again in the coming days.
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