Cardano Price Bullish Momentum Indicated as Technical Pattern Repeats 10 Times Suggesting a Potential Surge to the Moon
Altcoins are in the process of recovering from losses as investors evaluate the current market conditions. Cardano’s ADA, presently holding the 10th position, has experienced a 2% decline in the last 24 hours and a 3% drop over the past seven days.
An analysis by Crypto Capital Venture highlighted a consistent trend in the price movements of Cardano (ADA), with a focus on the 20-week moving average. Whenever ADA has entered the oversold zone on the stock’s RSI (a momentum indicator), historical data shows that it tends to experience an upward movement afterward.
This particular pattern has repeated approximately ten times, indicating significant price shifts on each occasion. Currently, ADA finds itself in oversold territory once more. Following historical trends, it may soon approach the 20WMA at approximately $0.52. A breakthrough past this level could signify the beginning of a new bullish phase for ADA, resembling patterns seen in prior cycles.
Short-Term Price Evaluation:
Observing the daily chart, there is a potential bullish divergence on the RSI (Relative Strength Index), a momentum oscillator. This divergence suggests that despite recent price drops, the momentum behind the decrease might be slowing down, hinting at a possible rebound.
Comparing current price movements to historical patterns, there are similarities that suggest a potential formation of a base and subsequent upward movement in the near future. Nevertheless, some sideways or downward movement could still materialize before a significant upward trajectory.
Ways to Monitor Resistance Levels:
In order for a bullish scenario to manifest, ADA must surpass significant moving averages: the 20-day at around $0.41 and the 50-day at approximately $0.44. A critical resistance range lies between $0.45 and $0.48 for confirming a bullish trend. On the weekly chart, ADA needs to breach the $0.53 mark to establish a robust bull market.
There may still be some periods of downward or lateral movement before a distinct bullish trend solidifies. Should ADA successfully break through and maintain support at the specified key levels, it could indicate the onset of a substantial upward movement.
For Further Reading:
Cardano Transition to ICC as Part of Chang Hard Fork
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