Amid the early June bloodbath, the Cardano coin price found support at the December 2022 bottom support of $0.24. The long-tail rejection at this support level reflects the strong buying pressure, hinting at a higher possibility of a bullish reversal. Using $0.24 as the base support, the weekly time frame chart reveals the formation of a double bottom pattern, a sign of aggressive accumulation from buyers that could trigger a significant upswing.
During the recent recovery in the crypto market, the Cardano price failed to surpass the immediate horizontal resistance of $0.3. This rejection at the $0.3 level indicates that sellers are still active, and buyers would need higher momentum to reclaim lost ground. However, the double bottom pattern suggests a potential upswing in the near future, with the current price of ADA trading at $0.282, experiencing an intraday loss of 3.3%.
Under the influence of this bullish pattern, ADA buyers could propel the price higher to challenge the $0.3 psychological barrier. A breakout above this resistance could result in a 20% surge, bolstering the pattern’s completion. Additional confirmation of a bullish upswing will come from a potential breakout from the $0.3 resistance. With sustained buying pressure, the coin’s price could rise by 55% to hit the neckline resistance of this double-bottom pattern at $0.462, offering an early sign of a trend reversal.
The Relative Strength Index (RSI) shows an evident rise in the weekly slope, contrary to the same low in price action, indicating bullish momentum for a potential rally. Conversely, the lower Bollinger Band challenges the downside, suggesting that sellers are aggressive in the current trend.
As the market conditions remain volatile, thorough research before investing in cryptocurrencies is essential to make informed decisions. While the double bottom pattern and RSI paint an optimistic picture for Cardano’s future, the Bollinger Band signals continued aggressiveness from sellers. Those interested in ADA should consider these factors and understand the risk associated with investing in the fast-moving cryptocurrency markets.
Source: Coingape
