The leading cryptocurrency started the new week with a decline as expected and closed its first red candle after 8 weeks. Institutional investors also completed the week with a slight net outflow for the first time in weeks. This negativity is considered normal in a period when ETF approval is anticipated because prices do not always rise; healthy corrections are customary processes.
Since October, the price of ADA Coin has increased by 184%, albeit slowly compared to other altcoins that have been performing well. The uptrend gained momentum particularly after breaking above the $0.4 level. Following Bitcoin‘s decision to form a bearish candle in its ninth week, investors have focused on a $1 target for ADA.
In the short term, while the MACD is giving a positive signal, the RSI is ambiguous. However, if closures below the $0.612 resistance continue, optimism could be further damaged. On the other hand, BTC’s solid stance below $42,000 and increasing sales bring to mind the risk of further losses.
Closures below $0.612 for ADA Coin could pave the way for the price to drop to the $0.5 level. For now, the price is closer to the resistance at $0.597. What do closures below the last support lead to? In this case, we could see a drop to $0.39. The potential for a return to the $0.4 resistance, which has been a struggle to surpass for a long time, is discouraging.
Last week, ADA Coin bulls, who failed to surpass the 0.000015 BTC level against Bitcoin (BTC), are now struggling to maintain the support at around 0.0000127 BTC, which coincides with the 50-week Exponential Moving Average (EMA). If this support level cannot be maintained, the next significant support for ADA would be at 0.000011 BTC, not only in dollar pairings but also amidst rapid peaks in BTC sales and victims of profit-taking.
For now, BTC faces the risk of a deepening correction unless it sees closures above $41,500 and $42,500. On the other hand, the upcoming PCE data on Friday could be the second most significant event of the month after the Fed meeting in December and may create the biggest shake-up for BTC prices. If the PCE is announced as low as expected, it could highlight the success in the fight against inflation and potentially push cryptocurrencies upwards.
