Cardano (ADA) Price Analysis: Bullish Signs Despite Fall Below Key Support Level
Read our Cardano (ADA) price analysis to discover potential bullish signs despite a fall below a key support level. Find out the latest price predictions and technical analysis.
Posted 10 months ago in Market Analysis
The price of Cardano (ADA) is currently trading inside a corrective pattern, but there are bullish signs indicating a potential trend reversal. ADA has formed a bullish double-bottom pattern, although it has fallen below an important horizontal support level.
On the bearish side, ADA has dropped below the critical $0.26 support area that has been holding since June 10. However, it is still hovering just above the $0.25 support level, which has been in place since the beginning of the year.
Despite the recent pullback, there are several factors suggesting a bullish outlook for ADA. The price has been moving inside a descending parallel channel since July 14, which typically indicates a corrective pattern. If this is the case, a breakout from the channel is likely in the near future.
Additionally, ADA has formed a double-bottom pattern since August 14, which is considered a bullish signal. This pattern is also accompanied by a bullish divergence in the RSI, indicating a potential trend reversal.
If ADA breaks out from the channel, it could see a 30% increase to the next resistance at $0.32. However, if the price gets rejected, a 20% drop to the channel's support line at $0.20 is a possibility.
On the shorter-term six-hour chart, there are mixed readings. ADA has broken out from a descending resistance line, but it is still trading below the minor $0.25 horizontal area. The RSI is increasing but has not crossed above 50 yet, which is necessary to confirm a bullish trend.
In conclusion, the future price prediction for ADA will depend on whether it breaks out from the channel and reclaim the $0.26 area or faces rejection. A breakout could lead to a 30% price increase, while rejection may result in a 20% drop.
Last updated 9/16/2023, 1:05:19 AM
Related Articles
Bitcoin's Death Cross Rally: Expert Benjamin Cowen Warns of Lower Highs
Posted 10 months ago in Market Analysis
XRP Price Analysis: Will XRP Test $0.55 Area in the Near Future?
Posted 10 months ago in Market Analysis
Bitcoin (BTC) Breaks September Slumber with 4% Surge – Bullish October Ahead
Posted 10 months ago in Market Analysis
XRP Analysis: Potential Scenarios and Implications for Traders and Investors
Posted 10 months ago in Market Analysis
News Letter
Subscribe to the CryptoCat.ai newsletter to stay updated with the latest cryptocurrency news, insightful articles, market trends, and more – delivered directly to your inbox!
Is email too old school? Well you can get your news directly on twitter just by following us
Follow Us