Will Cardano Rise to Reach $0.1 Again? (ADA/USD Price Prediction for 04/10/2019)

At BeInCrypto, we publish regular price analyses and prediction for Cardano (ADA). In our Apr 8 analysis of Cardano (ADA), we predicted that price would increase in the near-future. Price decreases have since occurred, but greater gains may still follow in the short-term. To learn more, read 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.

Prices have gradually decreased since.

Cardano Market Outlook — Cardano (ADA) Prices: Apr 3 – Apr 10

Will a reversal bring Cardano to new highs or will prices losses continue? Let’s find out:

Cardano (ADA): Trends and Highlights for Apr 10, 2019

Cardano reached a high on Apr 3 and has been on a downtrend since.
ADA/USD is trading inside a horizontal channel.
Bullish divergence is developing in the RSI.
There is 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 3, the price reached an hourly low of $0.0824. Several market cycles have been completed since. The price has reached the same level five times. Tracing these lows gives us a horizontal support line:

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 a horizontal channel:

In order to figure out whether or not price increases or breakout is imminent, need to take a look at the technical indicators.

Relative Strength Index

We begin by incorporating the Relative Strength Index into the analysis.

The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.

Combining RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. RSI is shown in the graph below:

On Apr 8, the price reached a low of $0.830. It made another low of $0.813 on Apr 9. Similarly, the RSI made the first low on Apr 8. However, it has proceeded to generate higher values. This is known as bullish divergence and often precedes price increases. Using this indicator suggests price increases toward the resistance line of the channel in the near future.

Future Movements

Resistance areas are created when the price revisits the same level several times. In case a breakout occurs, they provide possible reversal areas.

These are traced in the chart below:

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.

Summary of Analysis

Based on our analysis, the price of ADA will likely move towards the resistance line of the channel. A breakout remains possible. 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.

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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 Conditions, Privacy Policy, and Disclaimers have been updated.

Valdrin Tahiri

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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)

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