Cardano Price; An Inverted Head and Shoulder Chart Pattern, Bullish Movement Envisaged

Cardano Price; An Inverted Head and Shoulder Chart Pattern, Bullish Movement Envisaged

ADA Price Analysis – April 27

An increase in the bulls’ pressure can increase the price to $1.46 and $1.68 resistance level provided $1.31 level does not hold. Should the sellers interrupt the bulls’ pressure and gain enough momentum, ADA/USD may decrease to $1.23, $1.11 and $0.98.

ADA/USD Market

Key Levels:

 

Resistance levels: $1.31, $1.46, $1.68

Support levels: $1.23, $1.11, $0.98

ADA/USD Long-term Trend: Bullish

Cardano is bullish on the daily chart. Sellers dominated ADAUSD market last week with formation of more bearish candles. The bearish trend commenced on April 16 when the price was rejected at the resistance level of $1.46. Bearish engulfing candle formed at the mentioned resistance level and the price decline to $0.98 level. Yesterday, the bulls increases their momentum with the formation of strong bullish candle that engulfs previous candle and the price increases above $1.23.

ADAUSD Daily chart, April 27

The price has penetrated the 9 periods EMA and 21 periods EMA upside and the price is currently trading above the two EMAs. The former resistance levels of $1.23 has turned to support level. An increase in the bulls’ pressure can increase the price to $1.46 and $1.68 resistance level provided $1.31 level does not hold. Should the sellers interrupt the bulls’ pressure and gain enough momentum, ADA/USD may decrease to $1.23, $1.11 and $0.98. The technical indicator Relative Strength Index period 14 is above 50 levels with the signal line pointing upside which indicates a bullish signal.

ADA/USD Medium-term Trend: bullish

Cardano is bullish in 4-hour chart. The crypto has formed an inverted head and shoulder chart pattern; this is a bullish chart pattern indicating that the bulls are ready to push the price higher. The former resistance level of $1.11 and $1.23 have turned to resistance levels. The rice may increase to the resistance level of $1.46.

ADAUSD 4-hour chart, April 27

The price is trading above the 9 periods EMA and 21 periods EMA while the two EMAs are well separated from each other indicating bullish movement. The relative strength index period 14 is at 65 levels and the signal line pointing up to indicate buy signal.

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.