Cardano formed a bullish pattern

Daily chart analysis for ADA reveals that its price has been falling since reaching an annual peak of $0.46 in April. This decline reached its lowest point on 10 June at $ 0.22. After this decline, Cardano’s price experienced a recovery. It formed a long lower wick (black icon) and confirmed the $0.24 level as a support zone.

ADA then revisited the $0.24 support area twice, on 17 August and 11 September (green icons). This formed a triple bottom pattern, which is typically seen as bullish. Despite this bullish pattern, ADA has not yet made an upward movement.

In the news, Cardano founder Charles Hoskinson expressed his shock at Sam Bankman-Fried’s unfair coverage in the media. More specifically, he said, “The Bernie Madoff of my generation is being released by the media.”

Mr Hoskinson also introduced a new privacy-focused sidechain called Midnight Protocol. Its three core visions are based on Freedom of Association, Trade and Expression, leading to the acronym ACE. The daily Relative Strength Index (RSI) indicates that the trend is bullish. Traders use RSI as a momentum indicator to gauge whether a market is overbought or oversold, helping them decide whether to buy or sell assets.

During an uptrend, an RSI value above 50 indicates that bulls are in favour, while below 50 indicates that bears are at work. In particular, the RSI showed a significant bullish divergence (green line) during the formation of the triple bottom pattern.

This divergence occurs when an increase in momentum is accompanied by a decrease in price and usually signals a reversal towards the uptrend.

Source: kriptoparahaber.com

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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.