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Ethereum killer Cardano eyes $3 after two months of losing streak

  • Cardano price shows some respite after being stuck in a massive downtrend in a bull market.
  • Things are looking up for ADA as it dips into the daily demand zone and forms a triple-tap setup.
  • A daily close below $1.71 will invalidate the bullish thesis.

Cardano price saw nine consecutive weeks of downtrend after hitting a new all-time high on September 2. However, things are looking up for ADA due to two technical aspects that suggest a bullish outlook.

Cardano price vows to go higher

Cardano price has shed nearly 42% from its all-time high at $3.10 to its recent swing low at $1.775. This downswing comes when the entire cryptocurrency market is rallying. While this may be disheartening to ADA holders, things are starting to look up as two bullish signals arrive for Cardano price.

Cardano price seems to be in a bottoming process as its moves resemble a rounded bottom. Moreover, ADA has created a triple tap bottom reversal setup, which often leads to a massive upswing on the last tap. Adding tailwind to this pattern is the recent dip into the 12-hour demand zone ranging from $1.73 to $1.87. 

Therefore, Cardano price is due for a massive upswing, although it could be a slow climb to its top to $3.10. Investors should note that ADA will face crucial resistance barriers at $2.30 and $2.53, which need to be overcome to reach its final target.

ADA/USDT 1-day chart

ADA/USDT 1-day chart

While things are looking up for Cardano price, a breakdown into the $1.73 to $1.87 demand zone will signal a bearish outlook for ADA. A daily close below $1.73 will invalidate it. This move will also open the possibility of another downswing to the immediate support level at $1.58.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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