Cardano has experienced a significant drop in early June, with the ADA price consolidating above $0.24. Over the past week, the coin’s value has remained within a narrow range between the $0.3 and $0.241 levels, which can help predict its potential in the near future. While the current market sentiment for cryptocurrencies remains uncertain, observing these levels may provide valuable insight for investors.
The ADA price has formed a symmetrical triangle pattern within the 4-hour timeframe chart, trading at $0.266 by press time. The two converging trendlines can generate high volatility, leading to an explosive price movement. This triangle pattern typically signals a temporary pause before the price resumes its primary trend. If there is a breakdown below the support trendline, it could trigger an increased selling pressure and result in a 9% drop to the vital support level of $0.24.
On June 10th, the ADA price displayed a long-tail rejection candle at the $0.24 support, suggesting this level may be a robust accumulation zone and an essential point for a trend reversal. To reclaim higher grounds, buyers need to break through the overhead trendline of the triangle pattern. This breakout could offer them a firm foundation to drive the price to higher levels, challenging the immediate horizontal resistance of $0.253.
The Bollinger Bands and the Relative Strength Index (RSI) can provide additional market insights. Currently, the Bollinger Bands are squeezing, indicating that trapped momentum could lead to an imminent breakout opportunity. Furthermore, the rising RSI slope demonstrates underlying bullish momentum, suggesting that a breakout above the overhead trendline is a plausible scenario.
However, it is crucial to keep in mind that the presented information contains the personal opinions of the author and is subject to market conditions. As with any investment, conducting thorough market research before investing in cryptocurrencies is essential, as neither the author nor the publication holds any responsibility for personal financial losses. Despite the potential for further positive developments, it is always wise to exercise caution and skepticism when it comes to predicting the trajectory of the volatile cryptocurrency market.
Source: Coingape
