In the midst of the crypto market upheaval during April and May, the seventh largest cryptocurrency, Cardano (ADA), has returned to its 2022 low of $0.24. For about a month, the ADA price has been moving above this support, attracting buyers who are accumulating at discounted prices. The fact that the altcoin’s price has currently bounced from this support indicates demand and the potential for a trend reversal.
Cardano Price Analysis
The Cardano price is considered a strong accumulation zone as it has entered an uptrend from the $0.24 level for the second time in six months. This pair of jumps on the weekly chart reveals the formation of a bullish pattern known as a double bottom.
The ADA price is currently trading at $0.29 and is largely moving sideways as market sentiment veers off the path of recovery. However, continued buying pressure from the bottom could result in the buyers initiating an uptrend and breaking the downward sloping trendline that has been holding back the popular altcoin’s short-term correction. A break above this trend line will be the first significant signal for the reversal of the downtrend and the development of a bullish formation.
Could ADA Price Rise to $0.46?
A potential break from the resistance trend line will increase the upward momentum in the ADA price. The rally that begins after the break will support a 22% rise and carry buyers to the next significant resistance at $0.35. However, under the influence of the double bottom formation, it can be expected that the altcoin’s price will cross the neckline at $0.46 to provide a better signal for a trend change.
For ADA, the stochastic slopes have shown a significant increase related to the double bottom formation movement at $0.24, indicating underlying buying pressure. On the other hand, the fall of the altcoin at the lower band of the Bollinger Bands indicator warns that sellers have not yet thrown in the towel.
