Amid the recent correction phase in the crypto market, the ADA price showed a price downfall for nearly a month and plunged to local support of $0.35. However, the daily chart reveals that this support is also aligned with the lower trendline of the channel pattern. This pattern has carried a recovery rally in the Cardano coin for nearly four months, offering a great pullback accumulation opportunity at a lower trendline. Here’s how this pattern may influence the future trends of ADA.
A channel pattern appears to govern the ongoing recovery in ADA price, while a bearish crossover between the 20-and-50-day may encourage a sideways move for a few more sessions. The intraday trading volume in the ADA coin is $189.3 million, indicating a 13% loss.
As the crypto market has witnessed significant selling in the last few days, the Cardano price turned sideways above the support trendline of the channel pattern. Amid this consolidation, the ADA price showed several lower price rejection candles, reflecting the failed attempts of sellers to breach the support trendline. These rejection candles suggest a higher possibility of a bullish reversal from the channel support. At the time of writing, the ADA price traded at $0.358, with an intraday loss of 0.31%.
However, for better confirmation of a bullish reversal, the ADA price should breach the immediate resistance of $0.376-$0.373. A daily candle closing above this barrier will present an opportunity for interested traders.
In ideal conditions, a reversal from the channel support trendline typically drives a rally to the overhead trendline. As a result, the ADA price could witness a potential growth of around 40% to hit the $0.5 mark.
On the contrary, a breakdown below the support trendline would undermine the bullish thesis and lead to lower prices.
In terms of technical indicators, the Moving Average Convergence Divergence (MACD) and its signal line are falling lower into bearish territory, reflecting a sustained bear trend. Moreover, the 100-day Exponential Moving Average (EMA) is moving near the $0.376 barrier, increasing its significance as a chart level.
Intraday levels for Cardano coin price are as follows:
– Spot price: $0.359
– Trend: Bearish
– Volatility: Medium
– Resistance level: $0.37 and $0.378
– Support level: $0.35 and $0.324
It is crucial to note that the presented content may include personal opinions of the author and is subject to market conditions. Always conduct thorough market research before investing in cryptocurrencies. The author and the publication hold no responsibility for personal financial loss.
Source: Coingape
