Cardano could be ready for a long-term uptrend as it formed a double bottom on its 4-hour chart. Price appears to be breaking past the neckline, although it’s tough to tell with the recent pickup in volatility.
In any case, a move past the neckline could confirm that an uptrend is underway, possibly lasting by the same height as the chart pattern. If resistance holds, however, the price could revisit the bottoms and move sideways instead.
RSI seems to have room to climb before hitting overbought levels, which suggests potential bullish exhaustion. Stochastic is already on its way down after previously hitting overbought territory, which means that sellers are returning.
Cardano appears to be regaining its footing as it follows in the footsteps of Ripple after the latter’s exec hinted at the launch of xRapid. Earlier in the month, Abra has added Cardano to the mix of cryptocurrencies it offers, along with Tron, and Basic Attention (BAT).
Note that Cardano’s layered blockchain structure makes it ideal for use with traditional financial infrastructure as it allows for quick customization, upgrades, and scaling. With that, it wouldn’t be a surprise if more financial institutions attempt to tap into this digital asset’s network.
However, the latest spike in the price of around 15% appears to have had no major catalyst tied to it. Some point to the low liquidity on the lack of big developments has rendered positions more likely to move prices. Others say that it could be because of investors moving funds out of Bitcoin leading up to the SEC ruling on ETF applications and placing bets on other lesser-known altcoins instead.
In any case, the SEC decision could still wind up leading to another set of big moves for Cardano and its peers as an approval could mean more institutional funds flowing into the industry later on.
Images courtesy of TradingView
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