Published 12 hours ago
ADA price extends the downside momentum and remained offered below $0.50. In the last few hours, the price is trading in the red. Cardano (ADA) price analysis is bearish for the day.
- ADA price edges lower for the second consecutive day.
- A double top formation on the 4-hour chart calls for more losses.
- A reversal could be possible above $0.50;
ADA price looks downside
ADA is in play to test its previous swing high ($0.60) in the coming days. This week starts with a consolidation, forming the “Inside Candlestick” pattern. As the name suggests, an inside bar chart pattern engulfs the inside of a large candle(Bullish), some call it a mother bar. It’s a pattern that forms after a significant move (Upmove) in the market and represents a period of consolidation.
The price was trading in a tight range of $0.42 to $0.48 over the last two weeks. Finally, On September 04, the price gave a breakout above this range, but again faces the resistance of August 19 candle highs. If the price is able to close above $0.51, then there is a higher probability of the price testing its previous swing high.
ADA price on the four-hourly chart formed a “Double Top” pattern, facing heavy resistance near its current highs. The price test the 50% Fib retracement level of the downward move from the $0.59 swing high to the $0.42 low. According to this pattern, if the price started to fall and closes below $0.48, then we can expect a good fall up to $0.46. But, there is a higher probability of the price breaking below its resistance level.
The nearest support of ADA is at $0.48, whereas the nearest resistance is at $0.51. There is a higher probability of price testing its support first & even being able to break below it. So there is an opportunity to take i.e. “Sell on rising” near the above-given resistance.
On the other hand, a break below the $0.51 level could invalidate the bearish outlook. And the price can move toward $0.54.
Also read: http://Expert Says Cardano (ADA) Ahead Of Ethereum In Key Network Metric
ADA is slightly bearish on all time frames. Below $0.48 closing on the daily time frame, we can put a trade on the sell side.
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/this-chart-formation-indicates-a-correction-is-round-the-corner-in-ada-price/