Anticipating Cardano's Price Movement Before the Liberation Strike: Possibility of a Price Breakout?
Cardano (ADA), the eighth-largest cryptocurrency by market capitalisation, is currently in a symmetrical triangle pattern, according to recent chart analysis. This pattern, which has seen approximately 75% of its trajectory traversed, could indicate a significant move in the near future.
The current position of the Relative Strength Index (RSI) for Cardano is around the 50-point mark, suggesting a neutral starting position. However, the MACD (Moving Average Convergence Divergence) is currently indicating waning momentum for ADA, potentially hinting at a change in direction.
The reaction to the 50 EMA on the smaller timeframe for Cardano will be crucial in determining the next move. A bounce upwards from the 50 EMA could initiate a new uptrend, while a break of support from the same EMA could open the door for a deeper correction.
In recent weeks, the price of Cardano has been rejected twice at the upper resistance line, making it a strong barrier. A high trading volume was transacted in this region, further strengthening its position.
If the price of Cardano fails to find support at the 50 EMA, a pullback towards the 200 EMA and the underlying support area is likely. Historically, Cardano has found support at the 50-day EMA before embarking on new highs, suggesting that this could be a potential foundation for a continuation to the upside.
The likelihood of an impending breakout in Cardano increases as the price becomes more compressed within the pattern. Numerous positions have accumulated in the lower price ranges for Cardano, suggesting potential liquidity that could attract the market temporarily before another rally.
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It's important to note that the development of Bitcoin is crucial, as a stable Bitcoin price is necessary to support a potential upside breakout in Cardano. The MACD could soon enter negative territory for Cardano, which could further indicate a change in momentum.
In conclusion, the symmetrical triangle pattern in Cardano's chart suggests a potential shift in its price movement. The reaction to the 50 EMA on the smaller timeframe will play a significant role in determining whether a new uptrend is initiated or if a deeper correction occurs. As always, it's essential to conduct thorough research and consider seeking advice from experienced traders before making investment decisions.
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