Altcoins
Cardano Wedge Pattern Indicates Significant Trading Potential for ADA
Cardano (ADA) is showing a bullish falling wedge pattern, signaling a potential breakout and a lucrative trading opportunity.
The cryptocurrency market is experiencing a revival, with renewed investor interest boosting altcoins like Cardan (ADA) to recover from recent losses.
A detailed analysis by “S_CAPITAL” on TradingView reveals a potentially lucrative opportunity for traders. His daily chart for ADA highlights key technical patterns and indicators that suggest a bullish outlook.
Cardano’s falling wedge pattern signals a reversal
The ADA chart, which was drawn on a 24-hour time frame by the analyst, highlights a bullish trend. This trend is characterized by two converging trendlines that slope downward, usually signaling a potential bullish reversal.
According to the analyst, as ADA’s price pattern narrows, an upward breakout is imminent. He pointed out that such patterns historically have a high success rate, making this setup particularly attractive to traders.
Strong support levels reinforce this bullish outlook. The analyst noted that ADA has consistently found support in the $0.35 range, bouncing off these levels several times.
The analyst notably identified favorable entry points for Cardano at $0.4063, with a stop loss below $0.3096 to limit downside risk. The chart also displays a risk-to-reward ratio of 3.11, indicating that the potential reward is more than three times the risk involved.
As a result, the trader is targeting the $0.72 price point after a successful breakout of the rally. This represents an upside potential of around 76.10% from current levels.
The Relative Strength Index (RSI) at the bottom of the chart, which shows a bullish divergence, also confirms Cardano’s impending rally. The RSI has been trending upwards despite the price decline, suggesting that selling pressure is waning. This divergence is often a precursor to a price reversal, further adding weight to the bullish outlook.
Whale activity reinforces bullish sentiment
Cardano has recently seen a remarkable increase in inflows, showing that large holders are accumulating. According to data According to IntoTheBlock, whale addresses saw an inflow of 5.14 billion ADA, valued at $2.1 billion, on July 22. This inflow represents a 10,878% increase from the previous day.
Over the past week, inflows into large holders’ portfolios have jumped 22,768%, and over the past month, they have increased 172,952%. This dramatic increase in large holder inflows is largely attributed to a concentrated accumulation effort by whale investors.
During this press, Cardano is selling at $0.3902, experiencing a 6.82% decline in the last 24 hours and an 11.54% decline in the last seven days.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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