Cardano (ADA) is in the process of developing a symmetrical triangle, but moving forward there are two likely paths that can come to fruition.
Currently, ADA’s price is trading near the lower end of the symmetrical and above the 100-day . If a breakout occurs to the downside, we can expect a move towards the $0.94 , below the significant round number of $1.00. On the other hand, if the upper end of the symmetrical is broken, traders might aim at the all-time high of $2.46.
100-day Acting as Support
The 100-day acts as a dynamic support. The fact that we had multiple attempts to break below the 100-SMA and all failed is a sign that the bears had their shot. As of June 10th, the 100-day comes at $1.38 near the bottom of the symmetrical .
RSI Momentum Readings
One of the basic principles of is that momentum precedes prices. Right now, the momentum reading is located in a sideways channel near the mid-level 50. This tells us that as of now there is equilibrium between the buyers and sellers.
Published at Fri, 11 Jun 2021 11:28:55 +0000