Bullish Indicators Signal Cardano (ADA) Price Is Ready For A Bull Run

The Cardano (ADA) price in a long-term chart shows a series of higher highs and high lows projecting an established uptrend as per the dow theory. With the overall trend being bullish, interested traders hold a high probability of success in entering a long position. Given below are three reasons why ADA price may witness a significant recovery in the coming months.

Also Read: Cardano Founder Calls For “Decentralized Updates” Over Ledger Controversy

Cardano Price at Crucial Support

Source- Tradingview

Over the last five months, the Cardano coin price has witnessed a sustained uptrend under the influence of a parallel channel pattern. The support trendline of this setup stands as an accumulation zone where the market participant has shown interest in buying the dip.

Amid the recent correction in the crypto market, the ADA price has experienced a significant correction and plunged back to dynamic support. By the press time, the altcoin trades at $0.37 and hovers above the trendline trying to establish suitable support.

New Bullish Pattern On Daily Chart

Source- Tradingview

Using the $0.355 and lower trendline as the base support, the Cardano coin price shows the formation double bottom pattern. This pattern is one of the famous bullish reversal setups that could intensify the underlying buying pressure upon the breakout of neckline resistance.

With sustained buying, the ADA price will likely reach the $0.38 resistance, offering a long entry opportunity for traders.

Bullish RSI On The Daily

Source- Tradingview

The Relative Strength Index(RSI) is a famous chart indicator used to measure the strength and momentum of a price movement. Amidst the formation of a double bottom pattern, the RSI slope shows an evident rise indicating the growing buying pressure in this coin. This bullish divergence gives additional confirmation for bullish reversal and completion of the aforementioned chart pattern.

Will Cardano Price Break $0.5?

Source- Tradingview

A bullish reversal from the support trendline could trigger a new recovery cycle within the channel pattern. In an ideal bullish scenario, this reversal will drive a sustained rally to the overhead trendline near the $0.5 psychological level, indicating a potential growth of 35%.