Cardano Will Soon Reach Resistance and Break Out, Predicts Trader

Share Article

The price of Cardano (ADA) has seemed to reach a bottom and has created strong support throughout the months of September and October. The long-term outlook is extremely bullish and suggests a breakout. However, some time might be required for this pattern to materialize.

Sponsored



Sponsored

ADA has been gradually increasing in value since reaching a low in August. Each time it revisited these lows, it immediately bounced upward gaining more strength each time. Combined with the strong outlook from technical indicators, this suggests a breakout is in the cards.

Full-time trader @cryptomichNL stated that the ADA price has found support above 480 satoshis and will likely move towards the resistance area at 530-540 satoshis.

Sponsored



Sponsored

Cardano Long-Term Bottom

The ADA price reached a low of 396 satoshis at the beginning of August. Between then and October, it returned to the same level three more times, creating a triple bottom pattern and a long lower wick each time. This is a very bullish development.

Additionally, it is combined with a strong bullish divergence in the weekly RSI.

Therefore, it looks likely that Cardano will indeed break out. The closest resistance area is found at 540 satoshis. The price reached that level the previous week before decreasing slightly to the current price.

Ascending Triangle

The daily time-frame shows a developing ascending triangle when using the daily closing prices instead of the wicks.

However, the ascending support line has a very gradual slope, allowing for the possibility that the price will trade inside this triangle for several more months.

There is a bullish cross between the 100 and 200-day moving averages (MA), suggesting upward movement. If the price finds support above these MAs, it should not fall to the support line again.

A breakout could take the price to 640 satoshis.

To conclude, the long-term outlook for ADA is extremely bullish. However, due to the gradual slope of the ascending support line, we could see the price continue trading inside this triangle for a period of time before an eventual breakout.

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.


Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate 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.

Follow Author

Limited offer! Learn to mine and trade crypto today for free

Join

Earn up to $10,000 USD every week in CoinFLEX AMM+ Arena!

Earn Now

Be our Supreme Scorer and qualify for a grand prize pool of 200,000 USDT!

Join