HomeCoinsCardano (ADA)Cardano : A breach and something more in the works perhaps?

Cardano [ADA]: A breach and something more in the works perhaps?

- Advertisement -


Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

Over the past six weeks, the ascending channel (white) setup has accelerated Cardano [ADA]’s efforts to break the $0.55-resistance. Also, the consistent sway above the basis line (green) of the Bollinger bands (BB) reflected a near-term buying advantage.

With the breach of the $0.55-level, buyers could strive for more before giving in to the reversal tendencies of the pattern. At press time, ADA was trading at $0.5763, up by approx. 2.85% in the last 24 hours.

ADA Daily Chart

Cardano [ADA]: A breach and something more in the works perhaps?

Source: TradingView, ADA/USDT

The previous pattern’s breakout made way for a swift up-channel recovery on the daily chart. The price action now broke the squeeze phase while the basis line of the BB kept looking north. The alt would likely witness a high volatility phase in the coming days.

A compelling close above the midline (yellow, dashed) of the up-channel could aid the alt in retesting the upper trendline of the pattern. In this case, potential targets would rest in the $0.63-$0.65 range. Any close above this level would push the alt into price discovery.

Also, the latest price jump saw a corresponding hike in trading volumes by over 36% in the last 24 hours. A likely selling resurgence from the immediate resistance range could pose near-term recovery barriers. An eventual close below the pattern would give a selling signal.

Rationale

Cardano [ADA]: A breach and something more in the works perhaps?

Source: TradingView, ADA/USDT

The Relative Strength Index (RSI) took a visibly bullish position while breaching the 59-mark resistance (now support). This trajectory could play out in favor of the buyers until a plausible reversal from the overbought region.

Also, the OBV corroborated with the broader bullish narrative by replicating the price action’s higher peaks and troughs. The DMI further reiterated the previous readings, but the ADX displayed a slightly weak directional trend.

Conclusion

With buyers finding a break above the $0.55-level, ADA buyers could aim to extend its uptrend in the current up-channel. The targets would remain the same as above.

Finally, traders/investors should keep a close watch on Bitcoin’s movement and its effects on the wider market to make a profitable move.



Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 24,297.51
ethereum
Ethereum (ETH) $ 1,938.40
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 139.71
litecoin
Litecoin (LTC) $ 63.39
eos
EOS (EOS) $ 1.31
okb
OKB (OKB) $ 21.72
tezos
Tezos (XTZ) $ 1.81
leo-token
LEO Token (LEO) $ 5.10
cardano
Cardano (ADA) $ 0.573092
monero
Monero (XMR) $ 165.50
stellar
Stellar (XLM) $ 0.126037
chainlink
Chainlink (LINK) $ 8.80
huobi-token
Huobi (HT) $ 5.38
tron
TRON (TRX) $ 0.070526
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 55.05
neo
NEO (NEO) $ 11.58
iota
IOTA (MIOTA) $ 0.34838
nem
NEM (XEM) $ 0.054713
zcash
Zcash (ZEC) $ 74.02
maker
Maker (MKR) $ 1,024.92
paxos-standard
Pax Dollar (USDP) $ 0.998915
ethereum-classic
Ethereum Classic (ETC) $ 41.98
vechain
VeChain (VET) $ 0.032399
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX (FTT) $ 30.88
kucoin-shares
KuCoin (KCS) $ 10.64
waves
Waves (WAVES) $ 6.14