Cardano is among the few cryptocurrencies trading double-digit gains among the top 50. The market is dotted in green; however, price action remains lethargic. ADA is up 14% over the last 24 hours to trade at $1.11. For now, the least resistance path seems downwards but Cardano is trading within the confines of a bullish technical pattern, suggesting that an upswing is likely in the near-term.
The aspiring smart contract token trades at the apex of a falling wedge pattern, suggesting that a reversal is in the offing.
The bullish outlook forms when an asset’s price drops with pivot highs and lows while converging at a single point referred to as the apex. A breakout is usually anticipated before the trend lines converge.
The common breakout is mostly confirmed by a consolidation period, followed by a spike above the upper trend line and reinforced an increasing trading volume. As for Cardano, the 24% breakout is expected to come into the picture as soon the price steps above the wedge pattern and the hurdle presented by the 200 Simple Moving Average (SMA) and the 100 SMA on the 4-hour chart. It will be a real breakout if the 50 SMA’s seller congestion area is pushed into the rearview.
ADA/USD 4-hour chart
The expected upswing may fail to come into the picture if the Moving Average Convergence Divergence (MACD) continues to slope downwards. Currently, the MACD line (blue) is holding under the signal line, confirming the bears are still in control.
Cardano intraday levels
Spot rate: $1.1
Relative change: -0.006
Percentage change: -0.4%
Trend: Short-term bearish bias
Volatility: Low
