The Cardano (ADA) price in a longstanding chart shows a series of higher highs and high bottom Line projecting an established uptrend as per the dow theory. With the overall tendency being positive tendency, interested traders hold a high probability of success in entering a long position. Given below are 3 reasons why ADA price may witness a whole lot of recovery in the coming months.
Cardano (ADA) Price at Crucial Support
Over the last 5 months, the Cardano (ADA) coin price has witnessed a sustained uptrend under the influence of a parallel channel pattern. The support trendline of this setup stands as an accumulation zone where the market participant has shown interest in buying the dip.
Amid the past few correction in the cryptocurrency market, the ADA price has experienced a whole lot of correction and plunged back to dynamic support. By the press time, the crypto altcoin trades at $0.37 and hovers over the trendline attempting to set up suitable support.
New Bullish Pattern On Daily Chart
Using the $0.355 and lower trendline as the base support, the Cardano (ADA) coin price shows the formation double bottom pattern. This pattern is one of the legendary positive tendency reversal setups that could intensify the underlying buying pressure upon the breakout of neckline resistance.
With sustained buying, the ADA price will likely reach the $0.38 resistance, offering a long entry opportunity for traders.
Bullish RSI On The Daily
The Relative Strength Index(RSI) is a famous chart indicator used to measure the strength and momentum of a price movement. Amidst the formation of a double bottom pattern, the RSI slope shows an evident boost indicating the growing buying pressure in this coin. This positive tendency divergence gives additional confirmation for positive tendency reversal and completion of the aforementioned chart pattern.
Will Cardano (ADA) Price Break $0.5?
A positive tendency reversal from the support trendline could trigger a new recovery cycle within the channel pattern. In an ideal positive tendency scenario, this reversal will drive a sustained rally to the overhead trendline near the $0.5 psychological level, indicating a potential growth of 35%.