Cardano (ADA) has held up very well throughout the bloody markets the last few months. Bulls have defended major support found at $1.00 very well as it seems it is now a floor. With the market starting to turn around, so is ADA. Much anticipation of a full functioning platform has investors keeping their bets on Cardano becoming a better Ethereum.
While looking at the green falling wedge pattern, we can see a large breakout is soon to come. This pattern is 80% of the time a bullish one and has a minimum target of around $1.50. Cardano must fully clear the top trend of the wedge along with the major resistance found at $1.20 to be in position to start a strong uptrend.
IF the breakout is deemed successful, ADA will have to battle out next resistance at $1.27 along with the 200MA that has held price down for over a month.
Cardano Price Analysis: ADA/USDT 4 Hour Chart
Shown in light gray, ADA has just attempted to breakout of a 2 week long descending channel. If price fails to hold above this, it may be in for a ride back down to lower support levels. Price will find support at $1.09 & $1.03. The support found at $1.03 will be a strong floor as the bottom trend of the falling wedge also sits near that area. A break below this mark will trigger a large sell off, but seems unlikely as of now.
While looking at the RSI, we can see strength has just broken over a near 3 week downtrend line. This is the first step to revival as it confirms ADA is now in a short term uptrend. As long as RSI can stay over the 50 value, ADA remains bullish. The Stochastic RSI has been hanging out above the overbought line. This shows strength is maxed out and ADA has to make another upwards move soon or a short term pullback will be underway.
ADA intraday levels
- Spot rate: $1.19
- Trend: Bearish
- Volatility: Medium
- Support: $1.14
- Resistance: $1.20
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