Cardano (ADA) Price Approaches Long-Term Support, Will It Break?
The price of Cardano (ADA) is currently trading above the long-term support zone and has formed a short-term bullish pattern. Although a short-term recovery could occur, the long-term trend is downward.
The price of Cardano (ADA) declined after being rejected by the $0.38 resistance zone in early June. This action created a lower high (red arrow), confirming the market structure as bearish.
Subsequently, the ADA price dropped to the significant support area at $0.24, where it found recovery twice before (green arrows).
The bulls seems to be actively defending this area, as evident from the long lower wick of the previous week’s candle.
Therefore, the ADA price is likely to recover from the current level but not sustainably. This is because the main trend is down.
The weekly RSI indicator supports this possibility as it remains below 50 and is sloping downward.
If the price breaks below the $0.24 level, it could decline to the next support area at $0.17.
The 4-hour chart shows that the ADA price has been trading within an ascending triangle since it bounced on August 18. This is a bullish pattern, often leading to breakouts in many cases.
The 4-hour RSI has formed a bullish structure and crossed above 50, showing that the bulls are attempting a comeback.
If the price breaks out above the triangle, it could rise to the $0.30 zone, formed by the horizontal resistance and the triangle’s target.
The most probable technical outlook suggests that ADA’s price may decline to the $0.17 zone in the future. However, a short-term recovery to the $0.30 area could occur before such a move takes place.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
- Fetch.Ai (FET) Price Bounces Off Key Support, What Next?
- Pro-XRP Attorney Challenges SEC’s Approach In Ripple CEO’s Legal Battle