Published 2 days ago
Concerning the recent new year’s recovery, the Cardano coin price shows a V-shaped recovery in the daily time frame chart. In theory, this recovery describes a rapid and strong rebound in its bullish momentum following a sharp decline. However, amid this recovery, the coin chart revealed the formation of a rising wedge pattern.
Key Points:
- In core concept, this rising wedge pattern is considered bearish because it signals a potential reversal in the current uptrend and a shift towards a downtrend.
- A breakdown below the pattern’s support trendline could trigger a direction downfall.
- The intraday trading volume in the ADA coin is $275.4 Billion, indicating a 24% gain.
Source- Tradingview
A rising wedge pattern is a charting pattern that is formed when the price of an asset rises along with two converging trend lines. The upper trend line connects a series of higher highs and the lower trend line connects a series of higher lows.
The Cardano coin price continues to wobble inside the aforementioned pattern but shows weakness in the uptrend as each successive swing high is struggling to reach a considerable height. By the press time, the coin price trades at $0.4 but if the selling pressure increases it is likely to break the lower support trendline.
This breakdown will intensify the bearish momentum and trigger a minor correction phase. Anyhow, this pullback is needed as the Cardano coin price has not taken a sufficient break since the new recovery cycle began.
Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023
This potential downfall could tumble the price 20% down to reach the $0.345 support. However, some in-between supports that may resume the prevailing bullish recovery a bit earlier are $0.378 and $0.3545.
On a contrary note, the ongoing bullish rally will continue until the wedge pattern is intact.
Technical Indicator.
Relative strength index: concerning the rising price action, the falling RSI slope indicates weakness in bullish momentum. This bearish divergence supports the above-mentioned pullback theory.
EMA’s: the 50-and-100-day EMA nearing a bullish crossover could extend the ongoing bull run for a few more trading sessions.
Cardano Coin Price Intraday Levels
- Spot price: $0.4
- Trend: Bearish
- Volatility: Medium
- Resistance level- $0.426 and $0.465
- Support level- $0.378 and $0.3545.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/new-bearish-pattern-in-cardano-coin-foretells-20-drop/