Published 4 hours ago
The Cardano coin has been in a correction phase since mid-July, showing a V-top reversal from $0.379. This downfall evaporated the entire gains of the June-July rally and plunged to a low of $0.283. As a result, the altcoin lost a market value of 36.5% before rebounding from the aforementioned low. Is this support enough to restore bullish momentum in ADA?
Also Read: Cardano Debuts New Hydra Version, ADA Price Pump Incoming?
Cardano Daily Chart: Key Points
- A V-top reversal in ADA price indicates an aggressive selling momentum
- A bullish breakout from the $0.2785 barrier would set the ADA price for a 15% upswing
- The intraday trading volume in the ADA coin is $120.6 Million, indicating a 27% gain.
Source- Tradingview
On August 17th, the ADA price showed a long-tail rejection candle at $0.283 support reflecting the buyers’ accumulation at a discounted price. The resulting reversal pushed the prices 12% higher and currently trading at $0.263.
With sustained buying, the coin price may rise higher and challenge the August 17th high of $0.2785. This candle associated with a huge surge in volume indicates a strong force from sellers to plunge the Cardano coin lower.
However, a breakout above this barrier will break the seller’s weapon and give buyers additional confirmation for recovery. The post-breakout rally could surge the prices by 15%, hitting a downsloping resistance trendline.
Can ADA Price Extend Correction Trend?
If the overall market trend remains bearish, the Cardano coin may face a bearish reversal from the $0.2785 resistance. The supply pressure could trigger a sideways trend above the $0.283 support. Under a pessimistic approach, a breakdown below the $x and $x barrier would trigger a massive correction in ADA price.
- Bollinger Band: The downtick in the lower band on the Bollinger band indicator projects the bearish momentum is still aggressive.
- Relative Strength Index: The daily RSI slope must break the 40% mark to reflect suitable bullish momentum for a rally.
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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/cardano-price-prediction-breakout-at-0-278-signals-15-surge/