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 triangle pattern and above the 100-day simple moving average. If a breakout occurs to the downside, we can expect a move towards the $0.94 support level, below the significant round number of $1.00. On the other hand, if the upper end of the symmetrical triangle pattern is broken, bullish traders might aim at the all-time high of $2.46.
100-day SMA Acting as Support
The 100-day simple moving average 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 SMA comes at $1.38 near the bottom of the symmetrical triangle pattern.
RSI Momentum Readings
One of the basic principles of technical analysis is that momentum precedes prices. Right now, the RSI 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.
However, moving forward, any breakout above or below this RSI consolidation can give us clues as to which direction the ADA price may break.
Currently, ADA's price is trading near the lower end of the symmetrical triangle pattern and above the 100-day simple moving average. If a breakout occurs to the downside, we can expect a move towards the $0.94 support level, below the significant round number of $1.00. On the other hand, if the upper end of the symmetrical triangle pattern is broken, bullish traders might aim at the all-time high of $2.46.
100-day SMA Acting as Support
The 100-day simple moving average 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 SMA comes at $1.38 near the bottom of the symmetrical triangle pattern.
RSI Momentum Readings
One of the basic principles of technical analysis is that momentum precedes prices. Right now, the RSI 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.
However, moving forward, any breakout above or below this RSI consolidation can give us clues as to which direction the ADA price may break.