Under the influence of a symmetrical triangle pattern, the ADA price may prolong a sideways trend; Keep holding?
Published 21 seconds ago
As the overall market remains uncertain about the future of Bitcoin’s spot ETF, the altcoins become highly volatile with a price jump on one day followed by a sharp correction on the other. In particular, even blue-chip coins like Cardano are hit by such volatility. Struggling to sustain the positive cycle within a triangle pattern, the ADA price remains at a crossroads. With the price ready to bounce within the triangle pattern to give a bullish breakout, the possibility of a downfall to $0.20 keeps cautious traders at bay.
Will $0.24 Support Hold Under Bearish Pressure?
- The ADA price could see a 6% rise before hitting the next significant resistance near $.26.
- The Triangle pattern breakout will end the current consolidation phase and lead to a directional trend
- The intraday trading volume in the ADA coin is $143 Million, indicating a 16% loss
Following the long-term downtrend in the Cardano coin price, the crucial support level at $0.24 provides a bullish cushion. With the overhead bearish pressure resulting in multiple lower-high formations, the price actions lead to a resistance trendline.
Moreover, the $0.24 support level led to multiple lower-price rejections, leading to a support trend line, which completes a symmetrical triangle.
Currently, the ADA coin price action displays a sideways trend within the triangle pattern after the recent double-top reversal. As of now, the price action displays a bullish struggle to continue the positive cycle as the overhead bearish pressure kicks in.
Currently, the ADA price trades at $0.2483 with an intraday fall of 1.20%, leading to a bearish candle.
Will ADA Price Give The Triangle Breakout?
Taking a closer look at the daily chart, both the converging trend lines forming the triangle have provided multiple contacts to the price trend. Such contact points increase the credibility of the trendlines and make it difficult to determine the further price trend.
However, with the ongoing correction, the possibility of a downtrend breaking below the support trendline seems probable. In case the support trend line fractures, the ADA market value can plunge to $0.20.
On the flip side, a bullish comeback will boost the Cardano price higher to $0.26, leading to a triangle breakout. In such an optimistic case, the triangle breakout rally can reach $0.3.
- Moving Average Convergence Divergence: A potential bullish crossover between the MACD(blue) and signal(orange) lines supports a price jump to the overhead trendline.
- Bollinger Band: The uptick in the lower boundary of the Bollinger Band indicator moving along $0.24 increases the support strength of this level.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.