The price of Cardano (ADA) is trading inside a corrective pattern and has created a bullish double-bottom pattern.
Despite these bullish signs, ADA has fallen below an important horizontal support level. The bullish trend reversal cannot be confirmed until the price reclaims it.
Cardano Price Falls Below Support but Creates Bullish Pattern
The technical analysis from the daily timeframe provides mixed signs for ADA.
On the bearish side, the price has fallen below the $0.26 horizontal support area. This is a critical area since it has provided support since the June 10 low. At the time, the price bounced and created a long lower wick (green icon) before validating the area as support.
It is hovering just above the $0.25 horizontal support area. This is an important support area that has been in place since the start of the year.
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However, the price action since July 14 has been contained inside a descending parallel channel. These channels usually contain corrective patterns. If so, it would mean that the decrease since July 14 is corrective rather than the beginning of a new downward movement. In this case, a breakout from the channel would be likely.
Furthermore, the price has created a double bottom pattern since August 14. The double bottom is also considered a bullish pattern and has also been combined with a bullish divergence in the
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Author: Valdrin Tahiri
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