Will Cardano Price Rally to $0.36? Double Bottom Pattern Sets a 22% Upswing

On Wednesday, the US Federal Reserve’s Federal Open Market Committee (FOMC) announced its decision to raise interest rates by 25 basis points. These results aligned with the market expectations, causing a slight uptick in the crypto market.

As a result, the Cardano price shows a 1.12% intraday jump and rebounded from the combined support of $0.3 and ascending support trendline. Can this price reversal reclaim the lost ground amid recent corrections?

Also Read:  Cardano News: 4 Recent Launches, Upgrades Investors Should Know

Cardano Price Daily Chart

• The formation of a double bottom pattern set the ADA price for a 22% rally
• The $0.3 stands as a strong demand zone for crypto buyers
• The intraday trading volume in the ADA coin is $203.5 Million, indicating a 13.6% gain

Source- Tradingview

The last correction in the Cardano price found suitable support at the $0.3 psychological level. This horizontal level aligned with the 50% Fibonacci retracement level creates a high area of interest( AOI) and reflects a healthy retracement for the continuation of a bullish rally.

Amid the two weeks of consolidation above $0.3, the ADA price rebounded twice from the aforementioned support indicating the formation of a double bottle pattern. This bullish reversal pattern reflects active accumulation from buyers which bolsters a significant upswing in the near future.

The anticipated reversal should challenge the $0.33 neckline resistance for a bullish breakout. A post-breakout rally could surge the altcoin price by 10% to hit the $0.365 mark.

Will ADA Price Prolong Correction Trend to $0.25?

In case the eighth largest cryptocurrency- Cardano continues to face overhead supply pressure, the sellers could attempt a breakdown below the ascending trendline. The price drop with the daily candle closing below the dynamic support will accelerate the supply pressure and plummet the coin’s market value back to $0.276 support, followed by $0.25.

• Exponential Moving Average: The coin price below daily EMAs(20, 50, 100, and 200) indicates the market participants will face the least resistance for carrying the price lower.
• Moving Average Convergence/Divergence: A potential bullish crossover between the MACD(blue) and signal line(orange) of the higher time frame chart reflects the short-term trend remains positive.