$0.48 Breakout Could Encourage ADA Buyers For 14% Jump

0
18

Published 4 seconds ago

A bullish reversal from the bottom support of $0.425-$0.416 triggered a recovery opportunity for Cardano(ADA). Today, the altcoin is 5.44% up and attempts to break out from $0.48 resistance. Can buyers lead the price up above $0.55 resistance, or will the sellers pull the price lower?

Key points from ADA analysis: 

  • The $0.425 resistance breakout opens the door for a 14% bull run.
  • The ADA buyers attempt to reclaim the 20 EMA of the daily time frame chart
  • The intraday trading volume in the ADA coin is $762 Million, indicating a 46% gain.

TradingView ChartSource- Tradingview

The recent widespread correction in the crypto market bolsters a usual bicycle within the descending triangle pattern. The downfall discounted the prices by 28%, returning to the bottom support zone of $0.425-$0.416.

On August 29th, the ADA price rebounded from the accumulation zone and climbed 12.8% higher to hit the immediate resistance of $0.481. This bull run supported by rising volume activity accentuates the buyers’ confidence in a bullish breakout.

Also read: Cardano (ADA) Price Skyrockets, All Details On The Vasil Hard Fork Readiness

Thus, the $0.481 breakout would act as confirmation for a new bull cycle within the pattern. Moreover, the potential rally will trigger a 14% price jump to reach the shared resistance of the downsloping trendline and $0.55.

However, if prices sustain below the $0.48 level, the short-consolidation will extend for a few more sessions and plummet to $0.425 neckline support.

Anyhow, the true nature of this pattern is to continue the prevailing downtrend after the breakdown of neckline support. Thus, the ADA price is poised to break $0.425 support, slumping the coin to the $0.3 mark.

Technical Indicator

MACD indicator: A bullish crossover between the MACD and signal lines encourages a bullish breakout from $0.425 resistance. In addition, the histogram chart started to paint green bars, reflecting a switch in traders’ sentiment.

EMAs: the 20-day EMA has acted as a dynamic resistance or support throughout the formation of triangle patterns. Therefore, with a $0.425 breakout, the buyers will reclaim 20-day EMA support to bolster further growth.

  • Resistance levels- $0.5, and $0.542
  • Support levels- $0.45 and $0.4

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

Close Story

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here