The Cardano (ADA) course shows a striking recovery today. Despite weeks of decreases, the price increased by more than five percent this morning to $ 0.84. This seems to be exactly at a crucial point where a new rise can start.
What does the course do?
According to Erik Juffermans, technical analyst of NewsBit, Cardano (ADA) has been moving within a clear channel between $ 0.50 and $ 1.10 within a clear channel. In July the race formed a double bottom, after which Ada doubled in a month and a half to slightly above 1 dollars. That peak on August 14 is currently marking the peak. Since then, the race has started a correction again.
Ada is ready for rise
When we zoom in, a number of things stand out. The race fell back to the zone around $ 0.80, the same level that was of great importance in May and at the end of July. Exactly from this point a strong daily candle is now created. In addition, the race is once again bumping into a diagonal trend line that has offered strong support several times in recent months.
The price is now at a logical point for a possible new rise. The meeting of two strong levels explains today’s revival, in which the broader recovery of the cryptomarkt also plays a role.
It is important that Ada breaks around $ 0.90 to be able to continue because of the zone. In the longer term, the price target will remain the top of the range around $ 1.10. At the same time, caution is required. A fall under 0.80 dollars, along with a breakthrough of the diagonal trend line, would be a clear warning signal.
Source: https://newsbit.nl/cruciale-steun-houdt-stand-cardano-koers-kan-hard-omhoog/
