Cardano’s price recently formed a bullish triple-bottom pattern but did not start to rise. After the breakout, there was a definite lack of impetus, which resulted in $ADA reverting to its previous levels. Will the triple bottom pattern lead to a change in the ADA trend?
Cardano 5-day price chart. Source: Trading View
Cardano is currently exchanging hands at $0.25 level at the time of writing and it seems like whales are waiting for a clear pattern to emerge before buying more volumes. The 24-hour volume of $ADA is currently rising steadily on the 5-day chart.
A climb towards at least the $0.32 resistance level is the most likely direction for the $ADA price in the near future. Both the horizontal resistance zone and the 0.5 Fib retracement resistance level are present here. However, this level is 22% higher than the present value.
Both the long-term triple bottom and the short-term bullish pattern will be invalidated if the price drops below the $0.24 horizontal region. In this case, the price of Cardano may fall to the $0.20 level. The month of September saw mixed trading in $ADA. Cardano’s price found a lot of resistance at the $0.26 price level but $0.24 has remained as a bulwark for a long time. $ADA has repeatedly tested the rock-solid support at the $0.24 price level and might experience a short-term rally next month.
Twitter analysts also seem to be confirming this view. A post by @CryptoBusy seems to be confirming the view that Cardano could breakout only if it managed to counter the current strong resistance.
However, a long-term bullish rally for Cardano still remains elusive and the $ADA price needs more time to build up strength from a mid-term to long-term perspective. The more likely outcome in this instance is sideways trading in the region of $0.2450-$0.2550 till October and mid-November.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
