Cardano’s price prediction suggests that a double bottom pattern is at play, potentially leading to a strong recovery in the near future.
Cardano’s price has been in a two-month consolidation phase, consistently bouncing back from its $0.24 support level, suggesting strong accumulation. The daily chart shows that this ongoing support, along with the overall positive sentiment in the crypto market, has formed a bullish double-bottom pattern, a reliable reversal signal.
Is ADA’s Price Recovery Targeting $0.3?
- ADA’s price has risen for three days in a row with a notable increase in trading volume, indicating a sustained recovery.
- The double-bottom pattern sets the stage for a 16% price increase.
The ADA coin’s daily trading volume is at $123 million, indicating a 15% loss.
Source- Tradingview
On October 19, Cardano’s price had a significant bounce from its yearly support at $0.24, marked by a bullish candle. In the last three days, this led to an 8.8% recovery, bringing the current trading price to around $0.26 (seems like there’s a typo here).
This positive movement has formed a Double Bottom pattern on the daily chart, a signal often seen at market bottoms, indicating increased buying interest. If this pattern holds, there’s potential for ADA’s price to increase by another 3.7% and test resistance at $0.27.
A successful breakthrough of this resistance, with a daily candle closing above it, would give the bulls a strong position for a continued rally. After such a breakout, prices could surge by 12% to reach the psychological resistance level of $0.3.
Is ADA Price Set to Continue Sideways?
In the short term, Cardano’s price looks positive, but it’s essential to consider that its mid-term trend is still on the negative side. Looking at the daily chart, we can see a downward trendline that’s been guiding the correction. This trendline acts as a barrier, currently hovering around the $0.28 mark, which adds to the selling pressure at this level. So, if the coin starts showing signs of being pushed back at this point, it’s likely to continue moving sideways.
Here are a couple of key indicators:
- The Relative Strength Index (RSI) on the daily chart has seen a notable increase, indicating growing buying interest around the $0.24 level.
- The Super Trend Indicator in the daily chart is showing a green flag, suggesting that traders are feeling more optimistic about a potential recovery.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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