Published 42 mins ago
Cardano Price Prediction: The Cardano price has been in a correction phase for the past three weeks, during which the altcoin tumbled from a peak of $0.46 to a low of $0.38, accounting 17.5% loss. However, since last week, the price has retested the aforementioned support twice indicating the formation of a double bottom pattern in the daily time frame chart. Here’s how this pattern may influence the future price trend of Cardano coins.
Key Points:
- In theory, the double bottom pattern reflects the increase in buying at a particular base support which encourages buyers for trend reversal
- Multiple technical levels concentrated at $0.38 validate this level as a higher accumulation zone.
- The intraday trading volume in the ADA coin is $214.5 Million, indicating a 26% loss
Source- Tradingview
The base support at which the Cardano price forms the double bottom pattern is $0.38 which is aligned with 50% Fibonacci retracement level. A correction phase to the 0.5% FIB is beneficial for buyers to recuperate the bullish momentum and prolong the prevailing bullish trend.
Today, the ADA price trades at $0.389 with an intraday gain of 0.75%. Moreover, the daily candle shows a hammer-type candle at $0.38 support indicating a higher possibility of price reversal.
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This potential rally may drive the coin price to 8% to challenge the neckline resistance of this pattern at $0.42. A bullish breakout above this candle will strengthen the buying pressure and raise the coin’s market value by another 9-10% to hit the last swing high resistance of $0.46.
On a contrary note, a breakdown below $0.38 will offset the bullish pattern and prolong the correction phase.
Technical Indicator
Relative strength index: A slight bullish divergence in the daily RSI slope reflects the increasing buying pressure which may encourage the completion of a double-bottom pattern.
Exponential Moving Average: The 100-day EMA aligned with the $0.38 mark increases the support strength of this level.
Cardano Coin Price Intraday Levels
- Spot price: $0.388
- Trend: Bullish
- Volatility: Medium
- Resistance level- $0.4 and $0.46
- Support level- $0.38 and $0.35
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-bullish-pattern-at-key-support-forecast-18-rise-in-ada-price-enter-today/