The Price of Cardano (ADA) Shows Bullish Signs Against the Dollar
The price of Cardano (ADA) has experienced an increase after completing a bullish pattern on September 11. Two days later, it broke out from a diagonal resistance line. While ADA is likely to see further gains against the dollar, its trend against Bitcoin (BTC) remains bearish.
Cardano Price Bounces Back with Double Bottom Pattern
Analysis of the daily timeframe shows that ADA has broken out from a descending resistance line that has been in place since July 14. After reaching a low of $0.24 on August 17 and returning to the same level on September 11, the price bounced back, forming a double bottom. This pattern is considered bullish and often leads to upward movements.
The significance of this pattern is further reinforced by the readings of the Relative Strength Index (RSI). Traders use the RSI as a momentum indicator to assess market conditions and make decisions about buying or selling assets. The RSI reading for ADA is currently increasing and approaching 50. It has also generated bullish divergence, indicating a potential price increase.
ADA Price Struggles Against Bitcoin
While the ADA/USD chart presents a bullish outlook, the price is still struggling against BTC. The price action reveals a descending triangle pattern, which is typically bearish and often results in breakdowns.
The daily RSI for ADA/BTC is bearish, with the indicator below 50 and falling. This suggests a downward trend for the cryptocurrency pair.
Hot Take: Mixed Outlook for ADA
In conclusion, Cardano’s price prediction is positive when compared to the dollar but negative when compared to Bitcoin. A 25% increase is expected against the dollar, with the next resistance level at $0.30. However, a 23% decrease is anticipated against Bitcoin, potentially taking the price to 700 satoshis. The future direction of ADA remains uncertain, and investors should closely monitor market developments.
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