The price behavior of the ADA coin indicates a rounding bottom breakout with the neckline at $1.18, indicating a possible bull run to $1.50. Should you purchase additional items?
Key technical points:
- ADA prices approach the 200-day EMA.
- The 50-day EMA shows a sudden reversal teasing a potential bullish crossover.
- Finally, the 24-hour trading volume of Cardano is $1.49
ADA’s Previous Performance
The ADA coin price has made an extraordinary, optimistic return following a 35% decline in February and early March. However, the recovery surge, which accounts for a 50% increase, pushes prices to $1.21 from a low of $0.77. Additionally, the reversal results in the breakout of a rounded bottom pattern with a neckline around $1.18 following the 100-day EMA breakout.
Technical Analysis of the ADA
The ADA coin price exhibits an increase in purchasing pressure as trading volume increases, indicating a strong bullish commitment. As a result, the increased buying pressure suggests a strong likelihood of the uptrend continuing over the $1.20 level.
Cardano’s market price has soared in recent days following the 100-day EMA, resulting in a significant reversal of the 50-day EMA. As a result, the probability of a bullish crossover between the 50 and 100-day exponential moving averages increases.
RSI Indicator: The RSI indicator climbs further into the overbought zone, with dips at the 70% boundary. Additionally, the 14-day SMA is continuing its diagonal march toward overbought territory.
MACD Indicator: On a daily chart, the MACD and signal lines cross above zero with a positive alignment. However, the declining distribution of the MACD histograms indicates a bearish crossover, although the spread between the lines remains large.
In a word, the ADA technical analysis identifies a breakout entry opportunity with the likelihood of a $1.50 breakout surge.
As the entire crypto market receives more inflows, the ADA coin price obtains bullish support. As a result, the impending breakout rally has boosted the potential of breaking beyond the $1.50 level if it maintains above the 200-day exponential moving average.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.