Bitcoin’s price is currently below $62k, entering a dangerous territory. However, Cardano (ADA) has surged 2% in the last 24 hours. Bitcoin is managing to stabilize over the past day while most altcoins are attempting to recover. The cryptocurrency market is predominantly in the red today, with most coins making recovery efforts. Despite ADA’s price dip, sentiment around Cardano remains high. The broader crypto sector, particularly Bitcoin’s movements, also impacts ADA’s performance.
Analyst Crypto Capital Venture examined the daily chart for ADA. He brought to attention a swing low from April to the current swing low, noting a slight higher low on the RSI despite a downward move in ADA’s price. He explained that while bullish divergence is not a guaranteed sign of reversal, it is a signal worth paying attention to, even if it requires patience.
The analyst drew a parallel to a previous period when ADA was trying to bottom out, showing a higher low on the RSI during a consolidation phase despite a lower low in price. This historical pattern suggests that, although there are signs of a potential reversal, it may still be weeks away. Therefore, it is crucial to prepare for possible further downside and keep an eye on momentum oscillators.
Elliott Wave Technical Analysis
ADA is still below the trend line, with no confirmation of a low being in place. Although it seemed ADA might break out, it hasn’t managed to do so, likely due to low weekend trading volumes.
The coin has been holding a higher low, despite Bitcoin making new lows. This isn’t entirely convincing but noteworthy as ADA and some other coins are holding support well. Currently, ADA hasn’t broken any support or resistance levels, allowing for doubts about a potential bullish reversal.
The key support level to watch is $0.36. ADA needs to show a five-wave pattern to the upside for a confirmed reversal. If it makes another low, the next support levels are $0.352, $0.322, and $0.29. A convincing break above the trend line is needed for an early reversal signal.