Cardano eyes relief rally as ADA paints a “double doji” pattern

Key Takeaways:

  • Twitter-based trader believes ADA prices might jump to $0.73 post consolidation.
  • A double Doji pattern adds bullish tailwinds to the token.
  • Cardano prices continue to struggle with the descending trendline resistance.
ADA prices might reach $0.73 if Cardano consolidates at current price levels.
ADA prices might reach $0.73 if Cardano consolidates at current price levels. Image from Pixabay

NEW DELHI (CoinChapter.com) — Cardano’s native token ADA prices jumped nearly 10% between intraday low ($0.609) and high ($0.67) levels.

As per a Twitter-based crypto trader @Phoenix_Ash3s, ADA prices might reach $0.73 if Cardano pushes through after consolidating for a while at current levels.

The trader highlighted a similar upside movement for ADA in May this year, during which ADA prices consolidated near a support level before jumping upwards. Phoenix argues that the altcoin’s prices might repeat the pattern.

Also Read: Cardano pulls back as ADA fails to break out of bullish pattern.

A move towards $0.73 would result in ADA prices breaking above the double top pattern’s neckline. CoinChapter.com earlier reported that Cardano prices failed to break out from a bullish technical pattern called the double bottom.

Resistance Confluence Continues To Plague ADA Price Action

ADA drew bullish tailwinds from a technical pattern called the double Doji pattern. In detail, a Doji is a candlestick that forms when a cryptocurrency’s price opens and closes close to the same level. Long wicks on both ends with a thin or negligible body identify the candlestick.

Analysts view a single Doji as a sign of conflict between bears and bulls. Furthermore, a Doji that appears during a downtrend might suggest sluggish bearish momentum for ADA.

In addition, ADA has jumped 18.5% between Jun 6’s low ($0.57) and Jun 8’s high ($0.67) after forming the double Doji candles on Jun 4 and 5.

Meanwhile, ADA’s price action struggled with a resistance confluence between a multi-week descending trendline and Cardano’s 50-day exponential moving average (50-day EMA, purple wave) near 0.66.

ADAUDST daily chart with double Doji, descending trendline resistance, and MACD.
ADAUDST daily chart with double Doji, descending trendline resistance, and MACD. Source: Tradingview.com

Moreover, the trend-based momentum oscillator MACD remains bullish for the XMR token. Positive bars on the MACD histogram have started contracting. Expanding bars indicate the MACD line (difference between 12-day and 26-day EMA) might be moving away from its signal line (9-day EMA of MACD).

Also Read: Cardano (ADA) soars over 50% in four days — a bull trap?

Meanwhile, a move above ADA’s immediate resistance might provide Cardano the momentum to target resistance near $0.722. Finally, a sustained uptrend might help ADA prices challenge resistance at $0.8, near Cardano’s 100-day EMA (blue wave) before correction pare gains.

Conversely, a downtrend could see ADA prices test support near $0.61. In addition, a breach below its immediate resistance might push ADA prices to support from its 20-day MA (red wave) near $0.57. Finally, a marketwide sell-off would result in Cardano prices falling to support near $0.5.

At the time of writing, ADA was trading at $0.648, up 5.52% on the day.

close
Cardano, Cardano eyes relief rally as ADA paints a “double doji” pattern

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com