ADA Price Escapes Uncertainty with Triangle Breakout

The Cardano(ADA) price starts the week on a higher note, displaying a 12% intraday gain. The long bullish candle offers a bullish breakout from the two-weeks old descending triangle pattern. Thus, a daily candlestick closing above the downsloping resistance may trigger a short-term bullish pullback.

Key points: 

• The ADA price has gained 20% in the past three days
• Triangle breakout may surge ADA price to $0.75
• The intraday trading volume in the ADA coin is $719.6 Billion, indicating a 69.5% gain.

Source- Tradingview

After the $1 fallout on April 11, the ADA downtrend obtained a sudden boost and dropped it to a low of $0.406. The eight straight red candles on the weekly time frame chart reflect a constant fall for nearly two months, registering a 59.8% loss

However, along with the largest cryptocurrency, Bitcoin, the ADA price has witnessed uncertainty during the past two weeks. The coin price hovering above the $0.45 support showcased the formation of a descending triangle pattern.

Though this bearish pattern bolsters the continuation of the prevailing downtrend, under rare conditions with rising bullish momentum, the coin price triggers a bullish breakout. Thus, following the path of last weekend’s bullish reversal, the ADA price surged 12% today.

The price jump breached the pattern’s resistance trendline, offering a better confirmation of bullish recovery. Therefore, the expected rally is likely to provide two targets, i.e., $0.6 and $0.75.

Technical Indicator

The Bollinger band indicator’s narrow range accentuated the indecision among the market participants. However, amid the triangle breakout, the coin price also jumps above the indicator midline, indicating a positive flip in the trader’s sentiment.

A bullish crossover from the vortex indicator encourages additional buying in the market. In addition, the enlarging gap between the VI+ and VI- slope reflects growth in buying momentum.

• Resistance levels- $0.6, and $0.75
• Support levels- $0.45 and $0.4

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.