(ADA/BTC) Looking To Break Out, But Which Way is it Heading? By Cryptovest


Cardano Technical Analysis: (ADA/BTC) Looking To Break Out, But Which Way is it Heading?

Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.

has entered into a sideways channel after a long descending period from it’s all-time high at the start of the year. Depending on which way it breaks from this channel will be a strong indication of whether we see ADA rejoin the top 5 cryptocurrencies or watch it tumble further down the leaderboard.

Looking at the 1-day chart above we can see a potential bullish ascending flag pattern with green candles beginning to break out along the base support level at 1900 Sat. Volume has been consistently low compared to the earlier bull runs which catapulted Cardano to the spotlight at the end of 2017. Low volumes at the end of a flag pattern are usually construed as confirmation for an imminent bull run; described by traders as ‘the calm before the storm’.

We can also see a complete bullish ABCD pattern within the channel, with the AC point line distance [0.946] virtually identical to the length of BD [0.955]. This is another good indication of a positive trend, however, volumes are still very low and we have yet to see a crossover between the moving averages which would help confirm a reversing trend.

This pattern could also be an early bullish double bottom, forming a “W” pattern if it doesn’t break out immediately beyond the resistance level.

While this seems like promising news, there are concerns that ADA could also break bearish and exit the current sideways channel in a downtrend. There is a chance that we could see a bearish flag pattern emerge and force the price down further, as the chart below points out.

Currently ADA is looking to retest the 2500 Sats resistance level at the top of the channel after 3 unsuccessful attempts already.

If it fails again, then we could see the asset fall down below the base support level and find the next support much further down, around 1220 Sats.

Cardano (ADA) Price Prediction

At the time of writing, ADA is down -1.55% but recovering well from yesterday’s losses. The bullish signals are looking promising but it will largely depend on whether enough support can rally behind the asset to allow it to break beyond the channel.

According to the Cardano team roadmap we can expect the new ‘Basho’ performance update in 6 days time, so we could expect a bullish run up in anticipation of this event.

This article appeared first on Cryptovest

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