On May 16, the Cardano price (ADA) reached a high of $0.101. A gradual decrease was followed by an increase. The price reached similar highs on May 30 and June 3.
Since reaching the high on June 3, the price has been decreasing.
Will it reach highs above $0.1 again? Let’s find out!
Cardano Price (ADA): Trends and Highlights for June 7, 2019
- Cardano reached similar highs near $0.1 on May 16, 30 and June 3.
- It is trading inside a horizontal channel.
- ADA/USD has created a possible double top pattern.
- Bearish divergence is developing in the RSI.
- The price is trading below the 10- and 20-day moving averages.
- There is support near $0.075.
On June 4, the Cardano price (ADA) reached an hourly high of $0.086. A rapid decrease began and the price made a low of $0.082 during the same day.
Since then, the price has been trading inside the horizontal channel outlined below:
On June 7, the Cardano price (ADA) reached the resistance line of the channel. The three-hourly candles that touched the line had long upper wicks, indicating that there is selling pressure around that level.
Will the price break out or will it decrease towards the support line? A look at technical indicators is required in order to find out.
The Cardano price (ADA) is analyzed at daily intervals alongside the RSI (first graph) and the 10- and 20-day moving averages (second graph) below:
ADA reached similar highs near $0.1 on May 16. and June 3. This could represent the formation of a double top pattern. Because this is a bearish reversal pattern, we would expect Cardano price losses to follow.
Furthermore, the RSI generated lower highs on these two dates. This is known as bearish divergence and often precedes price decreases. It gains more validity since it is occurring in a bearish pattern.
Furthermore, the moving averages give a similar outlook:
The Cardano price (ADA) is trading below the 10- and 20-day MAs, which are offering close resistance to it. Furthermore, they are on the verge of generating a bearish cross.
The use of these indicators makes it likely that the price will decrease towards the support line of the channel and eventually break down.
To better predict where the price of Cardano might land following a possible breakdown, we incorporate support areas into the analysis.
The closest support area is found near $0.075. We believe the Cardano price (ADA) will eventually reach this area. However, a breakdown from the channel is required for the price to do so. Therefore, it is not necessarily a short-term target.
Based on our analysis, the Cardano price (ADA) will likely reach the support line of the short-term channel. Afterward, the technical indicators support a breakdown below the support line. This would cause the price to reach the support area near $0.075.
Do you think the price of ADA will break down 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.
Images courtesy of Tradingview.