The price of Cardano (ADA) is trading inside a crucial horizontal support area at $0.25. The area has been in place since the start of the year.
Readings from the weekly and daily timeframes are mixed, making it difficult to determine the future trend’s direction until the price makes a decisive movement in one or the other direction.
Cardano Price Hovers Above Support
The technical analysis from the weekly timeframe shows that ADA 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.
The price action inside the area gives conflicting signs. On the bullish side, ADA has seemingly created a triple bottom pattern (green icons). The triple bottom is considered a bullish pattern and is expected to move significantly upward.
On the bearish side, the price has fallen under a descending resistance line since the beginning of May. More recently, the line rejected the price in July (red icon), creating a long upper wick. When combined with the $0.25 area, this creates a descending triangle, considered a bearish pattern.
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Moreover, the weekly RSI is also undetermined. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold, and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if th
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Author: Valdrin Tahiri
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