The Cardanoย (ADA) price in a longstanding chart shows a series of higher highs and high bottomย Line projecting an established uptrend as per the dow theory. With the overall tendency being positiveย 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 wholeย lotย of recovery in the coming months.
Cardanoย (ADA) Price at Crucial Support
Over the last 5 months, the Cardanoย (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 theย pastย few correction in the cryptocurrency market, the ADA price has experienced a wholeย lotย of correction and plunged back to dynamic support. By the press time, the cryptoย altcoin trades at $0.37 and hovers over the trendline attemptingย to setย up suitable support.
New Bullish Pattern On Daily Chart
Source- Tradingview
Using the $0.355 and lower trendline as the base support, the Cardanoย (ADA) coin price shows the formation double bottom pattern. This pattern is one of theย legendary positiveย 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
Source- Tradingview
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 positiveย tendency divergence gives additional confirmation for positiveย tendency reversal and completion of the aforementioned chart pattern.
Will Cardanoย (ADA) Price Break $0.5?
Source- Tradingview
A positiveย tendency reversal from the support trendline could trigger a new recovery cycle within the channel pattern. In an ideal positiveย 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%.
