- Cardano price sets up a bullish divergence setup on the daily chart.
- The resolution of this formation could result in a 25% ascent to $0.306.
- Invalidation of the bullish thesis will occur if ADA produces a lower low below $0.231.
Cardano price has been on a downtrend for more than two months, showing seller domination. But the recent development gives hope for sidelined buyers as a quick uptrend might emerge.
Also read: Cardano price plummets despite rise in development activity and transaction volume, why?
Cardano price ready to move higher
Cardano price set up a range, extending from $0.380 to $0.231 as it shed 39% between July 14 and August 17. Currently, ADA trades at $0.245 and has produced three distinctive lower lows in the last month. But, the Relative Strength Index (RSI) and Awesome Oscillator (AO) have produced higher lows. This non-conformity is termed bullish divergence and often results in the underlying asset rallying explosively.
The result of this explosive breakout could lead Cardano price to rally 18% and tag the $0.289 hurdle. In some cases, ADA could tag the midpoint of the aforementioned range at $0.306, bringing the total gain to 25%.
A highly bullish case coupled with patient ADA holders could see Cardano price revisit the 200-day Exponential Moving Average (EMA) at $0.314. This move would constitute 28% gain.
ADA/USDT 1-day chart
While the bullish outlook for Cardano price makes logical sense, a continuation of the downtrend would hamper the bullish divergence. A decisive breakdown of the range low at $0.231 that results in the production of a lower low would invalidate the bullish thesis.
Such a development could see Cardano price could drop 7% and revisit the June 10 swing low at $0.214.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Week Ahead: Crypto market eyes a bullish turnaround Premium
A new week has begun, but crypto markets seem to be doing the same thing they have for the past few weeks – consolidate. However, this week will likely bring new opportunities as Bitcoin begins to show signs of revival.
Eigenpie announces EGP token airdrop for 100,000 centralized exchange users
Eigenpie is a SubDAO protocol, a multichain project that manages digital assets. The project focuses on staking Ethereum Liquid Staking Tokens (LSTs) like EIGEN and offers points to stakers.
SEC vs. Ripple lawsuit update: All related parties to file letters to seal motions and evidence
Ripple, SEC and any third parties are expected to file letters to seal proceedings and supporting evidence by Monday. Ripple CEO voiced concerns over the SEC’s treatment of the largest stablecoin, USD Tether.
Top AI tokens bleed despite reports of Apple closing deal to use OpenAI features
Apple has closed a deal with OpenAI to use the latter’s technology in its new iPhone, Bloomberg reports. The giant’s iOS 18 could come packed with ChatGPT features, per the report.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.