ADA/USD - Fakeout and breakdown. Can we recover? 🙄

ADA’s attempt to go above $2.4 was sharply rejected last week, and since then, the price has continued to make lower lows reaching $1.7 during yesterday’s correction. For this reason, ADA’s performance was poor in the last seven days, with a -10.3% drop.

The breakout from the descending triangle can be interpreted as a fakeout which may have trapped many bulls that hoped for a rally instead. The current resistance for ADA sits at $1.9, which was the former base of the descending triangle, while support is found at $1.7 and $1.5.

Looking ahead, ADA may have an opportunity to stop the bearish trend as the RSI has made a bullish divergence on the 4-hour timeframe, similar to Ethereum. However, one has to be very careful as daily MACD continues to remain bearish. To confirm the bullish divergence, ADA has to return back above $1.9.

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