See More

Will Cardano Reclaim Highs Over $0.1 This Week? (ADA/USD Price Prediction: 04/08/19)

3 mins
Updated by Valdrin Tahiri
Join our Trading Community on Telegram
In our Apr 5 analysis of Cardano (ADA), we predicted that price would trade within the confines of the pattern we have defined below and eventually break out. Since then, the price has been trading within the confines of the triangle. While a breakout has yet to occur, it still remains possible. Learn more in our latest analysis below:

On Apr 2, Cardano initiated a rapid move. By the end of Apr 3, it had reached a high of over $0.1.
A significant downtrend followed with a low of under $0.083 reached on Apr 4. Prices slightly rise and plateaued throughout the next several days. Currently, ADA/USD is trading closer to the lows of Apr 4 than the highs of Apr 3:
ADA Market Outlook
Cardano (ADA) Prices: Apr 2 – Apr 8
Will Cardano reclaim new highs or fall to lower lows? Let’s find out:

Cardano (ADA): Trends and Highlights for Apr 8, 2019

  • Cardano reached a high on Apr 3 and has been on a downtrend since.
  • ADA/USD is trading inside a symmetrical triangle
  • It is trading below the lower bollinger band.
  • There is support near $0.08 and resistance near $0.01.

Ascending Triangle

 Cardano’s current pattern is traced using the one-hour prices of ADA on Binance from Apr 2 to Apr 8.
On Apr 2, the price reached an hourly low of $0.079. Several market cycles have been completed since. The price has made several higher lows. Tracing these lows gives us an ascending support line:ADA Ascending Support On Apr 4, the price made a high of $0.0947. A gradual drop was followed by a gradual increase. The price has reached the same level four times. Tracing these highs gives us a horizontal resistance line. The resistance and support lines combine to create an ascending triangle:

ADA Triangle

It is likely that the price moves within the confines of this triangle until a decisive move occurs. The ascending triangle is a bullish pattern. This mean prices increases—including a possible breakout above resistance—is more likley than price decreases. In order to figure out whether or not price increases or breakout is imminent, need to apply a few technical indicators.

Bollinger Bands

We begin by incorporating Bollinger Bands into the analysis.
A Bollinger Band is a technical analysis tool defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA). It is used to locate possible reversals after sharp move in one direction.
This is traced in the graph below:
ADA Bollinger Bands
On Apr 8, the price reached a low of $0.863. This caused it to trade below the lower bollinger band. We can see that the previous three times this occurred, a price increase ensued. Using this indicator suggests price increases toward the resistance line of the triangle in the near future.

Future Movements

The price of ADA on Binance is analyzed at two-hour intervals from Mar 31 to Apr 5 in order to better assess resistance and support areas.
Resistance and support areas are created when the price revisits the same level several times. In case a breakout or a breakdown occurs, they provide possible reversal areas.
These are traced in the chart below:

ADA Reversal Areas

The first resistance area is found near $0.01, coinciding with the recent high of Apr 3. If the analysis in our previous section proves to be correct, the price could eventually reach this area. The closest support area is found near $0.08. We currently do not believe that Cardano will reach this area in the near future.

Summary of Analysis

Based on our analysis, the price of ADA will likely move inside the confines of the ascending triangle. Price increases are likely with a possible breakout. Do you think the price of ADA will break out or break down from the triangle? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored