This Chart Formation Indicates A Correction Is Round The Corner In ADA Price?
ADA price extends the downside momentum and remained offered below $0.50. In the last few hours, the price is trading in the red. Cardano (ADA) price analysis is bearish for the day.
- ADA price edges lower for the second consecutive day.
- A double top formation on the 4-hour chart calls for more losses.
- A reversal could be possible above $0.50;
ADA price looks downside
ADA is in play to test its previous swing high ($0.60) in the coming days. This week starts with a consolidation, forming the “Inside Candlestick” pattern. As the name suggests, an inside bar chart pattern engulfs the inside of a large candle(Bullish), some call it a mother bar. It’s a pattern that forms after a significant move (Upmove) in the market and represents a period of consolidation.
The price was trading in a tight range of $0.42 to $0.48 over the last two weeks. Finally, On September 04, the price gave a breakout above this range, but again faces the resistance of August 19 candle highs. If the price is able to close above $0.51, then there is a higher probability of the price testing its previous swing high.
ADA price on the four-hourly chart formed a “Double Top” pattern, facing heavy resistance near its current highs. The price test the 50% Fib retracement level of the downward move from the $0.59 swing high to the $0.42 low. According to this pattern, if the price started to fall and closes below $0.48, then we can expect a good fall up to $0.46. But, there is a higher probability of the price breaking below its resistance level.
The nearest support of ADA is at $0.48, whereas the nearest resistance is at $0.51. There is a higher probability of price testing its support first & even being able to break below it. So there is an opportunity to take i.e. “Sell on rising” near the above-given resistance.
On the other hand, a break below the $0.51 level could invalidate the bearish outlook. And the price can move toward $0.54.
Also read: http://Expert Says Cardano (ADA) Ahead Of Ethereum In Key Network Metric
ADA is slightly bearish on all time frames. Below $0.48 closing on the daily time frame, we can put a trade on the sell side.
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