Key Highlights
- Cardano (ADA) price falls and makes a series of lower highs and lower lows
- A breakout above the $0.05 and $0.06 demand zones is a signal that the downtrend is over
- As the price of Cardano makes its final down move, the price pattern forms a bullish reversal
Cardano’s Current Statistics
The current price: $0.047
Market Capitalization: $1,234,344,922
Trading Volume: $61,196,625
Major supply zones: $0.07, $0.08, $0.09
Major demand zones: $0.03, $0.02, $0.01
Cardano Price Analysis September 10, 2019
On July 16, the coin fell to the low of $0.051 and the market corrected itself to a high of $0.062 demand zone. After its upward movement, the crypto’s price begins to make a series of lower highs and lower lows with two contracting lines. As price continues its downward move, the price action begins to narrow down making the bears exhaust their selling pressure.
This indicates that the market is forming a falling wedge in a downtrend which may likely reverse the trend. Nevertheless, if the price action follows a falling wedge pattern, the price will eventually break the upper line of the falling wedge and reach the previous high of $0.07 demand zone. The price movement after the breakout is likely to be the same magnitude as the height of the formation.
ADA Technical Indicators Reading
The price of Cardano forms a falling wedge in its final downward move. The upper line and the lower line of the falling wedge is slanting down from left to right. If the upper and the lower line converge, the price may breakout above the upper trend line.
ADA price is likely to rise, the moment price breaks the upper trend line. The cryptocurrency’s price is above the 25% range of the daily stochastic indicator. This indicates that price is in a bullish momentum and a buy signal. Nevertheless, the colored lines of exponential moving averages are sloping southward indicating that price is falling.
Conclusion
The price of Cardano is likely to rise as shown by the falling wedge. The price pattern was formed at the bottom of the downtrend which gives the impression that the bearish trend is likely to reverse. The upper trend line is descending at a steeper angle than the lower trend line.
If the upper and lower lines contract the trading activities and volume will diminish as price narrows down. A breakout is inevitable if the market narrows down after the contracting lines. If price breaks the upper trend line, ADA is expected to reverse and trend higher. Traders may want to look out for a buy set up to initiate long orders.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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