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Cardano’s ADA has been rising for the past two weeks
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The token was rejected twice on resistance resulting in a double top
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ADA may slip, but investors should be eager for potential breakout
Double top and double bottom are important price action signals in the financial markets. The “tops” are seen as a price peak and a possible sign of an impending bear market. “Bottoms” are interpreted similarly and suggest a potential price bounce.
Cardano ADA/USD is one of the cryptocurrencies that has remained bullish since mid-July. The crypto token reached a high of $0.54 on July 20, up from $0.41 on July 14. This happens amid an increase in whale activity on the network and the rise of most cryptocurrencies. The exhaustion of the bulls is evident after trading slightly above or below resistance. We believe ADA could fall further, but investors need not panic.
ADA builds up on resistance in the form of a double top under pressure
Source – TradingView
ADA price is under pressure after forming a double top just above the $0.52 resistance level. The rejection of the price at the same level confirms the exhaustion of the buyer. As a result, ADA will continue to decline in the near term. However, it also suggests that buyer interest in ADA remains strong. The buyers then tried to clear $0.52 for the second time.
ADA has broken below the 14-day and 21-day moving averages. This confirms slight bearish pressure in the near term. The token has minor support at $0.48, where the price is likely to settle. Another drop could see ADA close at $0.44.
closing thoughts
Although ADA is under pressure from the double top, buyer interest remains high. We expect only short-term downside. If ADA manages to overcome the consolidation above the $0.52 resistance, it will see a sustained recovery.
Post Cardano Forms a Double Top – Are We Likely to See a Price Drop? Appeared first on CoinJournal.