- Cardano (ADA) has been consolidating since the second week of June.
- The price of Cardano has formed a triple tap setup.
- This move could push up the price by 20% from its current price to trade at $0.550.
Since the second week of June, Cardano (ADA) has been consolidating. Due to this sideways movement, ADA has formed a bullish reversal setup that could be crucial for ADA to escape from the current raging markets.
The price of Cardano has formed a triple tap setup. This move is very similar to a triple bottom, but there are a few differences.
This technical formation from ADA does not have all the swing lows along the same line but has three very distinctive lows with the central low being much deeper than the others. The friar and the third swings are often along the same trend line.
Cardano Perpetual Futures 4h (Source: FXStreet).
Usually, a trend like this could signal a reversal in trend favouring the bulls if it forms after a downtrend.
In the case of Cardano, this move could push up the price by 20% from its current price to trade at $0.550. If ADA’s bullish momentum continues, the price could reach the nest level at $0.628.
This is why it is very important for investors to carefully watch ADA’s reaction to the $0.443 to $0.459 four-hour damned zone.
This triple tap setup for ADA will be invalidated if the price of Cardano closes a four-hour candlestick below the $0.435 support level. A recovery rally will only be possible if the ADA price can very quickly recover above this level.
If this does not happen, ADA faces the possibility of a 12% drop in price to retest the immediate support level at $0.380.
According to CoinMarketCap, Cardano is currently trading at $0.4511 after a 4.34% drop in price over the last day.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.