At BeInCrypto, we publish regular price analyses and prediction for several digital assets. In our Apr 25 analysis of Cardano (ADA), we predicted that price would increase. Our prediction was validated on Apr 24 when Cardano reached the support area we defined. To learn more, read our latest ADA/USD($) and ADA/EUR(€) analysis below:
On Apr 2, Cardano initiated a rapid upward movement. Highs of over $0.1 and €0.09 were reached the next day.
Will Cardano make a successful reversal soon?
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
Cardano’s current pattern has been traced using the six-hour price of ADA/USD on Binance from Apr 3 to Apr 29. We do not include euros in this section because only one trading pair is needed to generate the current trading pattern. Both ADA/USD and ADA/EUR are discussed in the final two sections.
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.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
The RSI and MACD are traced alongside the price in the graph below:
Future Movements
To better predict where the price of Cardano might land following a possible breakout, we incorporate resistance areas into the analysis.Resistance areas are created when the price revisits the same level several times. If a breakdown occurs, they provide possible reversal areas.
One resistance area is traced for both ADA/USD and ADA/EUR in their respective graphs below:
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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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
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)
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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