This Chart Pattern Bolsters Cardano Price For Prolong Recovery; But There’s a Catch
A rising parallel pattern has given a specific direction to the ongoing recovery in Cardano price. In response to this pattern, the buyers obtain strong support from a dynamic trendline acting as a ladder to climb higher levels. Here’s how this pattern may affect the ADA coin’s future price and how interested traders can profit from it.
Key Points:
- The ongoing recovery in the Cardano price is likely to challenge the multi-month resistance of $0.427
- The ADA price rallying with a series of new higher highs and higher lows is a key trait of sustained recovery
- The intraday trading volume in the ADA coin is $446.5 Million, indicating a 58% gain
Source- Tradingview
Under the influence of a channel pattern, the V-shaped recovery in Cardano coin price has nearly recovered the losses experienced during the Mid-February to Mid-March. On March 31st, the rising price gave a decisive breakout from a local resistance of $0.385-$0.38, offering buyers additional flooring to rise higher.
After a minor pullback, the ADA price jumped 3.83% from the aforementioned support and reached the current price of $0.397. This post-breakout rally will likely surge the Cardano price 7.8% higher to hit the multiple months resistance zone of $0.427-$0.42.
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This high supply zone triggered November 2022 and February’s second-half downfall. Thus, the buyers could face strong selling pressure at the $0.42 mark, which puts the Cardano price under a correction threat.
In case of a potential reversal, a bearish breakdown from the pattern’s support trendline will give additional confirmation for a downfall.
However, until the channel pattern’s support trendline is intact, the bullish rally may continue and surpass the $0.427 barrier to reach $0.463.
Technical Indicator.
MACD: the MACD(blue) and signal line(orange) moving higher in the bullish territory indicates sustained buying in the market.
Bollinger Band: the ADA price moving between the upper and midline of the Bollinger band indicator indicates the buyers hold an upper hand.
Cardano Coin Price Intraday Levels
- Spot price: $0.396
- Trend: Bullish
- Volatility: Low
- Resistance level- $0.427 and $0.46
- Support level- $0.38 and $0.35
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