Cardano Price Prediction: ADA eying up $0.10 thanks to a reversal pattern forming
- Cardano is currently trading at $0.09 after a major 33% crash in the past five days.
- Bulls are defending the daily 200-MA while the overall trading volume continues declining.
Cardano had a colossal rally towards $0.15 that started back on March 12, as most of the market. The digital asset had a 775% value increase over five months.
ADA/USD 4-hour chart
The trend is relatively straightforward, ADA is in a strong downtrend but has formed a double bottom at around $0.086, and a bounce is currently underway. Bulls have lost all three Moving Averages, which would act as resistance levels, but the nearest is over $0.10 for now.
ADA/USD 1-hour chart
Cardano has formed a possible W pattern, also called a double bottom, although in this case, it could be considered a triple bottom. The first low was $0.0854, the second $0.0855, and now the last at $0.086. All three also coincided with overextended RSI levels
According to the IOMAP chart provided by IntoTheBlock, many addresses bought at an average price of $0.0917 and $0.098. Both levels represent high resistance areas that, if broken, would push ADA above $0.10.
ADA/USD 30-minute chart
Bulls are currently struggling to climb above $0.09, which coincides with the 50-MA. They will also face more resistance at $0.092, the 100-MA. The RSI is currently right around the middle and will not pose any threat to the bulls in the short term.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
