Cardano Price; Double Bottom Chart Pattern at $1.11 Level, Bulls May Take Over Soon

Cardano Price; Double Bottom Chart Pattern at $1.11 Level, Bulls May Take Over Soon

ADA Price Analysis – April 20

An increase in the bears’ pressure can decrease the price to $0.98 and $0.83 support level provided $1.11 level does not hold. Should the buyers gain enough momentum and the daily candle closes above $1.23 level, ADA/USD may increase to $1.31 and $1.46.

ADA/USD Market

Key Levels:

Resistance levels: $1.23, $1.31, $1.46

Support levels: $1.11, $0.98, $0.83

ADA/USD Long-term Trend: Bearish

Cardano is bearish on the daily chart. ADAUSD broke out of the ranging zone two weeks ago. It rallied towards north side and the bulls’ pressure was consistence. The price reached the high above $1.46 price level but the bulls’ momentum became weak and could not sustain the level. The bearish engulfing candle emerges and the this triggered the downtrend experienced in the Cardano market.

ADA Daily chart, April 20

The price has penetrated the former support levels of $1.31 and $1.23 downside. It has reduced to $1.11 value. An increase in the bears’ pressure can decrease the price to $0.98 and $0.83 support level provided $1.11 level does not hold. Should the buyers gain enough momentum and the daily candle closes above $1.23 level, ADA/USD may increase to $1.31 and $1.46. The technical indicator Relative Strength Index period 14 is above 40 levels with the signal line pointing upside which indicates a bullish signal.

ADA/USD Medium-term Trend: bearish

Cardano is bearish in 4-hour chart. The crypto formed a double top chat pattern on the 4-hour chart last week at the resistance level of $1.46. The price obey the bearish command. ADA Falls to the support level at $1.11on April 18, it pulls back to retest the $1.31 level. ADA returned to test the support level of $1.11 second time to form a “double bottom” chart. This is a bullish reversal signal indicating the bulls may take over the Cardano market.

The two EMAs are separated from each other and the price is trading below the 9 periods EMA and 21 periods EMA at close contact while the relative strength index period 14 is at 40 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.