In the midst of a downward trend in several major cryptocurrencies due to increased selling pressure, the Cardano price has experienced a decline of 1.22% and is now approaching the support trendline of the rising channel pattern. This ascending trendline has a historical reputation of acting as an active accumulation zone for traders, ultimately resulting in significant recovery cycles.
Notably, the Cardano coin price is maintaining an overall bullish trend while the channel pattern remains intact. A breakdown below the lower trendline could signal the resumption of the prior downtrend, sparking concern among investors. The intraday trading volume in ADA coin was reported as $189.5 million, demonstrating an 0.97% gain.
On May 28th, ADA price broke through the local resistance of $0.38, igniting bullish anticipations for a new recovery rally. However, due to the intensified selling pressure in the market, buyers were unable to maintain this level and consequently fell back below $0.38.
This decline resulted in the Cardano coin price plummeting to $0.37 and potentially another 2% tumble to reach the ascending trendline. In the past five months, the altcoin has rebounded from this support level on three occasions, reflecting its strength as a buying zone.
Experts predict that the ADA price is likely to bounce off this level and regain bullish momentum. Assuming a potential reversal occurs, buyers could push prices to attain $0.42, $0.46, and eventually $0.5. Rebounding off the support trendline could energize bullish momentum in the ADA price. In theory, a reversal from a lower trendline encourages buyers to initiate a recovery cycle that could reach the upper trendline. As a result, the subsequent recovery could propel Cardano’s price towards the first target of $0.42.
Indicators such as the Bollinger Bands and Vortex Indicator also provide some insight into the current market conditions. The significant squeeze of the Bollinger Bands suggests that the ADA price is in a highly volatile phase. Meanwhile, the bullish crossover state of the Vortex Indicator (VI+ and VI-) indicates a prevailing bullish market trend.
While the author’s opinions may contribute some valuable perspective, it’s essential for investors to conduct thorough market research before making any financial decisions involving cryptocurrencies. The volatile nature of the market and potential for personal financial loss highlights the importance of taking every opinion and available data into consideration.
Source: Coingape
