Cardano Price Analysis: ADA Tests Multiple Resistance Near $5.40; What’s Next?
Cardano price analysis depicts a sideways trend sign today following the previous session’s gains. Currently, the bulls face a challenge at $0.540. A successful breach of the critical resistance level would pave the way for another leg-up in the token. Bulls are targeting the inverted Head & Shoulder pattern toward $0.60.
As of writing, ADA/USD is exchanging hands at $0.540, up 0.52% for the day. The seventh-largest cryptocurrency by market cap holds the 24-hour trading volume at $851,264,100 with more than 12% gains.
- ADA price consolidates the gain near the higher levels following the previous session’s price extension.
- A slow-down momentum in RSI portrays the continuation of consolidation.
- A daily candlestick above $5.47 would bring more gains in the token.
ADA price extends consolidation
The Cardano price analysis showed a slow down in the upside momentum but stick to higher levels.
On the daily chart, the ADA price formed an inverted “Head and Shoulder” pattern. The price was continuously trading in a downtrend for so long. The head and shoulders chart pattern is a reversal pattern. With this formation, we would place a long entry order above the neckline which is $0.55. A “neckline” is drawn by connecting the highest points of the two troughs. According to this pattern, we can expect a good move of up to $0.64.
On June 12, the price broke down below $0.55, & gave a fall of up to 25%. It’s been more than two months, and the price still has not been able to break the resistance, indicating strong resistance for the near future.
The RSI is trading above 50, which generally means that the gains are greater than the losses.
On the flip side, a break of the session’s low would mean a correction is impending. In that case, the price could test the previous session’s low $0.50.
On the four-hour time frame, the price has formed a volatility contraction pattern. The declining volumes along with a tight price range in a symmetrical triangle pattern, along with Cup and Handle pattern mark the same thing.
There is a higher probability of price giving the resistance breakout in near future, with above-average volumes.
Also read:https://coingape.com/cardano-ada-flips-busd-to-become-7th-largest-crypto-tests-0-55-resistance/
The nearest resistance is close to $0.55, whereas the nearest support is at around $0.525.
Further, a break below the $0.5o level could invalidate the bullish outlook. And the price can move below $0.45.
ADA is bullish on all time frames. Above $0.56 closing on the hourly time frame, we can put a trade on the buy side.
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