On Apr 2, Cardano initiated a rapid move. By the end of Apr 3, it had reached a high of over $0.1.
Cardano has since been on a gradual downtrend. Despite volatility along the way, Cardano reached a low around $0.80 on Apr 11.
Let’s find out:
Cardano (ADA): Trends and Highlights for Apr 11, 2019
- Cardano reached a high on Apr 3 and has been on a downtrend since.
- ADA/USD is trading inside a horizontal channel.
- It is following a longer-term ascending support line.
- Bullish divergence is developing in the RSI.
- There is resistance near $0.01.
On Apr 4, the price reached an hourly low of $0.0827. 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 five 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
Cardano’s previous movement was traced using the two-hour prices of ADA on Binance from Mar 24 to Apr 11 alongside the RSI to determinepossible future price moves.
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 9, the price reached a low of $0.81. It made another low of $0.80 on Apr 11.
Similarly, the RSI made the first low on Apr 9. However, it has proceeded to generate higher values.
This is known as bullish divergence and often precedes price increases.
Furthermore, we can see that the price has been following an ascending support line (dashed) since Mar 22.
Combined with the resistance line of the channel, it creates an ascending triangle, which is a bullish pattern, making price breakouts more likely.
Using this indicator and the longer-term support line suggests price increases toward the resistance line of the channel in the near future.
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 eventually break out from the channel? Let us know in the comments below.
To learn more about Cardano click on the button below. We’ve even included price predictions for 2019 and 2020!
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.