On Apr 2, Cardano initiated a rapid upward movement. Highs of over $0.1 and €0.09 were reached the next day.
The rest of April has not been so pleasant. Cardano’s price has steadily dropped throughout the month.
Lows of $0.068 and €0.061 reached on Apr 24.
Over the next several days, the price slightly rebounded only to fall near Apr 24’s lows.
Let’s find out:
Cardano (ADA): Trends and Highlights for Apr 29, 2019
- Cardano reached a high on Apr 3 and has been on a downtrend since.
- It has been trading inside a descending wedge.
- Bullish divergence is developing in the RSI and the MACD.
- There is resistance near $0.08 and €0.071.
Descending Wedge
On Apr 4, the price reached a low of $0.082. Several market cycles have been completed since. Lows have grown successively lower.
Tracing these lows gives us a descending support line:
On Apr 4, the price made a high of $0.101. A gradual drop was followed by a gradual increase. The price has reached several lower highs.
Tracing these highs gives us a descending resistance line. The resistance and support lines combine to create a descending wedge:
It is likely that the price will continue trading inside the confines of this wedge until a decisive move occurs.
In order to figure out the direction of the move, we need to take a look at technical indicators.
What Do The Technical Indicators Reveal?
We will incorporate the RSI and MACD into this section of the analysis to predict future price movements for Cardano.
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.
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On Apr 21, the price of ADA reached a low of $0.073. It reached another low of $0.066 on Apr 25.
Similarly, the MACD and the RSI made the first low on Apr 21. However, they have continued to generate higher values since. This is known as bullish divergence and often precedes price increases.
The use of these indicators suggests that price increases towards the resistance line are to be expected. A breakout is likely.
Future Movements
To better predict where the price of Cardano might land following a possible breakout, we incorporate resistance areas into the analysis.
The closest resistance area is found near $0.080 and €0.071. We believe the price will eventually reach this area.
Summary of Analysis
Based on our analysis, the price of ADA will likely reach the resistance lineoutlined above. It is likely that it will break out and reach the resistance area outlined above.
Do you think the price of ADA will breakout from the wedge? 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.
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