ADA Price Analysis: Is $0.25 the Next Target for Sellers?
ADA Price Analysis: In the daily time frame chart, the Cardano coin correction has shaped into a falling wedge pattern. The chart pattern is characterized by two converging trend lines which state a gradual decrease in bearish momentum. The coin price has tumbled 23% in a month. Here’s how buyers may use this chart pattern to regain trend control.
Also Read: Cardano (ADA) Welcomes Wrapped Bitcoin on Mainnet
Cardano Daily Chart: Key Points
- A bullish breakout from the falling wedge pattern will set the ADA price for a fresh rally.
- The coin price below the 100-and-200-day EMA indicates the over trend is bearish
- The intraday trading volume in the ADA coin is $150.6 Million, indicating an 18% gain.
Source- Tradingview
In response to increasing bearishness in the crypto market, the ADA price witnessed a significant down this week. Amid this drop, the sellers showed their sustainability below the $0.3 psychological barrier favoring the possibility of further downfall.
In addition, until the two converging trendlines are intact, the Cardano coin could further extend the downward trend potentially reaching the $0.275 mark. However, the traders waiting for an entry opportunity should wait for a breakout above the wedge pattern resistance.
This breakout would offer traders a strong footing to surge higher. The post-breakout rally would likely surge the prices by 11.5% to reach the $0.33 mark.
Will ADA Price Prolong Downfall Correction?
While the chart setup favors buyers, if the coin price breaks below the support trendline, the bullish thesis will get invalidated. This possible breakdown could tumble the price by 13.4% to hit the $0.24 mark.
- Relative Strength Index: The daily RSI slope above 40% reflects the buyers holding the potential for a bullish reversal.
- Exponential Moving Average: The downsloping daily EMAs(20, 50, 100, and 200) would act as a dynamic resistance against buyers.