This is the monthly technical analysis on Cardano (ADA) since May 2018 on its trading pair with Bitcoin. The blockchain 3.0 project is currently facing a sharp fall in price in the last 30 days as the overall market crumpled along with Bitcoin. We start off by checking the relative strength index that shows us the state of the coin on the market whether it is being highly bought or sold. I will also explain the upcoming bullish momentum shown by the wedges on the charts. Finally, we offer the current main figures every investor needs to understand if they own ADA.
Relative Strength Index (RSI) ̶ May 2018
Looking at the hourly charts below, the ADA/BTC pair seems to be oversold with the relative strength index at 23.36%. In the last 5 hours the RSI has steadily oscillated below the 30% region showing investors willingness to sell ADA/USD pair. The price has also dropped from $0.15830 to below $0.15173 in the last couple of hours trading representing a 4% loss in the last 5 hours. Historically, such low RSI index shows an upcoming bullish momentum. This also explains the wedges convergence to signal an upcoming bullish trend if it breaks the mark.
The two large falling wedges seen on the ADA/BTC chart since May 2018 above shows the possibility of a bullish pattern to come in the near future. Statistically, falling wedges show the upcoming bullish momentum, with the upside of the breakout measured at the widest point of the wedge. The chart shows the three descending triangles which shows they can break bullish giving measured moves to the upside of the largest section of the wedge. However, given the huge dependence on BTC, ADA may be heading to a bearish momentum as the BTC charts shows.
In this focus, we placed three targets (the blue wedge, the yellow-gold wedge and smallest wedge) on the widest point of the wedge as ADA looks towards a bullish momentum. If Cardano (ADA) price crosses below the downside (the narrowest point of the wedge) we may well expect a continuation of the low prices seen in the ADA/BTC pairs. If the price breaks above one of the widest parts on any of the wedges, investors should look forward for a bullish momentum break for profits.
The recent state of the market is generally bearish meaning ADA may see its price continue to fall in the coming days as the RSI analysis shows. The oversold state of Cardano shows an upcoming bullish trend as the index is expected to oscillate in the normal region. I expect the price of ADA to slightly fall to the narrowest point of the wedges and then breakout to a bullish momentum.
ADA Numbers on the board
The cryptocurrency market has been on a downturn for the better part of the last 30 days as bitcoin fell from almost $9,000 to $6,400 during the period. This sharp decline brought with it a drop in prices of most coins in the market including ADA.
Cardano (ADA) currently trades at $0.148220 USD, representing 8% loss in the last 24 hours. The coin still ranked 8th on Coinmarketcap listings with a total market cap of $3,842,910,395 USD.