Published 11 minutes ago by
Brian Bollinger The formation of rising wedge patterns was evident in the Cardano coin’s price action over the last three weeks. This chart pattern is usually found in a downtrend. It is characterized by converging trendslines that slope upwards. This pattern is considered a bearish continuation as it signals a potential trend reversal to downside and a reversal of trendlines. Thus, on February 5th, the ADA price gave a bearish breakdown from the pattern’s support trendline, indicating the coin holders may have witnessed a significant downfall.advertisementKey Points: The formation of a falling wedge pattern is itself a sign of bullish momentum getting exhausted a chance of potential correction is high
A bearish break from the pattern’s support line sets ADA at 17.5% down to $0.325
The intraday trading volume for the ADA coin is $275.4 billion, which represents a 24% increase.
Source: TradingviewThe Cardano price trades as $0.397 at the press time and is currently in a retest phase. The 4-hour chart showcased higher price rejection during the retest to the breached trendline, indicating the sellers are defending the newly obtained resistance.Furthermore, the higher swing low developed during the chart formation is a potential target for short selling. If the market sells continue, this could cause the price to fall to support levels of $0.37, $0.358, or $0.325. Trending Stories This bearish pullback could also offer buyers a small chance to regain bullish momentum and restart the recovery. Technical Indicator. Relative Strength Index: A clear downfall in the daily RSI slope in opposition to rising prices is a sign of weakness in bullish momentum. This bearish divergence increases the probability of an upcoming downfall.advertisementEMA’s: A potential bullish crossover between the 50-and-100-day EMA offer should strengthen bullish growth in ADACardano Coin Price Intraday LevelsSpot price: $0.392
Trend: Bearish
Volatility Medium
Resistance level: $0.414 and $0.438
Support level: $0.373 and 0.353
Share this article:About author
Disclaimer
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. Close Story