Cardano Inches Its Way Towards a Bullish Break Of Falling Wedge-ADA has held major support of $1.15 strongly
-Price has formed a large falling wedge pattern
-ADA has failed to hold its 30 day MA
Cardano has had a rough last couple weeks as price has fallen nearly -25% to its major support. This price action was not out of the ordinary as the majority of the cryptocurrency market also fell as a result of BTC dropping to its $31,000 support level. Price has been stuck in a near 3 month downtrend as bears have not given up control. Although, there are some signs a trend change may be in the process.
Shown in green, Cardano has been forming a falling wedge pattern the last 3 months. This pattern is similar to the one spotted on BTC & it is generally a bullish pattern. In the short term, bulls must break & hold the major resistance zone found at $1.20-$1.27 to have a shot at revival. If ADA manages to break & hold this mark, we can then say price is out of its falling wedge pattern in a bullish way. This will likely cause a push to major resistance of $1.34.
If Cardano turns bullish in the short term, it must then tackle the 30 Day MA. This MA has held price down since the beginning of June. If bulls fail to do so, price will likely retrace back to its major zone of $1.20-$1.27. If this also fails, we can expect ADA to touch back to support of $1.20, $1.14 & $1.09, respectively.
While looking at the RSI, we can see strength has been basically flat lined for months. This has created a descending channel like structure which needs a strong breakout to either side to have a confirmed trend change. The Stochastic RSI has been hanging out in oversold territory which is a sign a reset has occurred which may have set the stage for another bullish push.
ADA intraday levels
Spot rate: $1.21
Trend: Bearish
Volatility: High
Support: $1.15
Resistance: $1.27
