The price of Cardano (ADA) has seemed to reach a bottom and has created strong support throughout the months of September and October. The long-term outlook is extremely bullish and suggests a breakout. However, some time might be required for this pattern to materialize.
ADA has been gradually increasing in value since reaching a low in August. Each time it revisited these lows, it immediately bounced upward gaining more strength each time. Combined with the strong outlook from technical indicators, this suggests a breakout is in the cards.
This one is still hanging around here, but as long as 480 holds, we can start attacking the upper range resistance at 530-540.
Breaking that and this can start moving as well. pic.twitter.com/Zw2m3ZBW2A
— Crypto Michaël (@CryptoMichNL) November 26, 2019
Cardano Long-Term Bottom
The ADA price reached a low of 396 satoshis at the beginning of August. Between then and October, it returned to the same level three more times, creating a triple bottom pattern and a long lower wick each time. This is a very bullish development.
Additionally, it is combined with a strong bullish divergence in the weekly RSI.
Therefore, it looks likely that Cardano will indeed break out. The closest resistance area is found at 540 satoshis. The price reached that level the previous week before decreasing slightly to the current price.
The daily time-frame shows a developing ascending triangle when using the daily closing prices instead of the wicks.
However, the ascending support line has a very gradual slope, allowing for the possibility that the price will trade inside this triangle for several more months.
There is a bullish cross between the 100 and 200-day moving averages (MA), suggesting upward movement. If the price finds support above these MAs, it should not fall to the support line again.
A breakout could take the price to 640 satoshis.
To conclude, the long-term outlook for ADA is extremely bullish. However, due to the gradual slope of the ascending support line, we could see the price continue trading inside this triangle for a period of time before an eventual breakout.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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