Market Analysis

ADA Technical Analysis – Double Botttom

Cardano, the smart-contracts platform, is awaiting a consensus algorithm upgrade that is likely to take place by the 29th of February 2020 through a hard fork, as mentioned by Charles Hoskinson.

The blockchain’s native token, ADA, has risen by approximately 100% since the beginning of the year. Once price found support at the $0.0315 monthly key level, the momentum allowed the digital asset to cross the $0.0497 monthly barrier and test $0.0618, where price is currently finding resistance.

Whether ADA’s PA will be able to cross the current resistance or not, is yet to be seen. Nonetheless, considering the market’s current momentum, it will likely do so in the near future. Once crossed, one could potentially target the next level at $0.0862.

The same image is communicated by the daily timeframe, which also shows us that $0.0497 was not retested as support. The latter is not a necessary scenario for price to keep pushing higher. However, retests are an opportunity for price action to pick up further demand.

Ultimately, ADA/USD has presented a HTF double-bottom pattern which will need to cross the grey liquidity area at [$0.11175-$0.12205] in order to be activated. The latter has a target of approximately $0.19.

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