Reacting to the increasing bearishness in the crypto market, ADA price painted a massive red candle on Aug. 17, hitting a low of $0.238. However, after the significant decline, the price moved completely sideways and traded in the range of the above daily candle. While this area could be marked as a no trade zone, its borders can be used to predict the potential price action.
Also Read: Binance Removes Cardano, MATIC, Pepe Coin, BTC and 35 Other Liquidity Pools. What does that mean?
Cardano daily chart: key points
- ADA price swinging in a narrow range creates a rectangular pattern on the daily chart.
- A bullish breakout above $0.278 could add 15% to the coin price
- ADA coin intraday trading volume is $146.5 million, up 8.7%
Source – Trading View
For almost two weeks, Cardano price has been moving sideways, reflecting buyers’ or sellers’ initiative to regain control of the trend. As this consolidation may not produce significant candles to predict future trends, it increases the importance of the August 17 candle that enveloped the sideways trend.
Therefore, the daily chart is creating a range between the two horizontal levels of $0.278 and $0.238. At press time, ADA price is $0.262 and it could continue its sideways trend until the range pattern is intact.
However, if upward pressure builds in the market, the coin buyers could breach $0.278 for a launch pad that could boost the recovery rally by 15% and hit the upper trendline at $0.32.
Will Cardano Coin fall back to $0.22?
The major altcoin continues to face undue supply pressures as uncertainty mounts around leading cryptocurrency Bitcoin. If ADA price breaks below the $0.238 support, sellers could push the prices to $0.22.
Relative Strength Index: Despite moving sideways, the daily RSI slope is showing a sharp increase, which indicates the increasing buying pressure at the lower support levels
Exponential Moving Average: Any falling EMA (20, 50, 100, and 200) can act as significant resistance to a bullish recovery.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.