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Bitcoin Bears Kick ADA out of Consolidation

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Cardano has endured the biggest losses out of the top 25 coins by market cap on Tuesday morning, with an 8.36% decline against BTC.

In the video analysis, done on Monday, we could see that ADA was actually tracking well inside two consolidating patterns – a descending triangle over 4 hour candles and a falling bullish wedge over a much closer 1 hour candle range. Both patterns were exhibiting bearish indicators, but with the next roadmap announcement due in a few days, there was potential for bullish traders to gather in the run up to these new developments.

Right now, the crypto market is recoiling after Bitcoin’s sudden drop in performance, with many investors pulling into pegged-value assets such as Tether (USDT) and TrueUSD (TUSD) to insulate their portfolios from further losses. This is reflected in ADA’s trading markets, where ADA/USDT trading on Binance accounts for nearly 24% of all Cardano trades in the last 24 hours.

In the 4hr ADA/BTC we looked at on Monday, you can see that the base support of the descending triangle had two highlighted areas at 18,800 and 16,600 Sats, with the latter now looking promising to catch the falling price action.

When ADA last arrived at the 16,600 Sats support way back on March 18, we saw a bullish ‘Adam and Eve’ pattern emerge, which catapulted the asset back towards the upper sloping resistance area with a massive 150% gain over 45 days.

Once the asset retraces back to this support it will be a highly critical area in determining whether ADA breaks bearish and continues to decline rapidly, or whether it can find strong support and is able to bullishly reverse from this bottom.

Bullish Signals

Right now, if we look at the ADA/BTC chart over 1hr candles we can see that, despite a falling price trend, the Chaikin Money Flow indicator (CMF) is actually rising through the zero line which indicates that money is flowing back strongly into the asset and that we should expect a reversal soon.

The RSI is showing ADA as very oversold right now too, with the indicator line far below 30.

MACD is also looking like it’s beginning to ark back towards the signal, having fallen well below the slower moving average as earlier momentum declined.

Cardano (ADA) Price Targets

 

Price Target 1: Cardano already appears to be reversing, with a sudden strong green candle spiking from the 0.886 fib level. If this uptrend can continue, the bulls will want to return to the top of the earlier base support at 18,800 Sats (6.52% ROI).

Price Target 2: Once bulls have rested along this support we could see a continuation carry ADA back towards the 0.618 fib level at 20,160 Sats (14.22% ROI).

Bitcoin’s performance is still looking moderately bearish today and will play an important role in shaping ADA’s price action over the next few weeks. For now, all eyes will be on the new roadmap announcements that are due in less than two days time, hoping for some exciting developments to arrive that will help boost ADA trading.

Source:www.cryptovest.com