Cardano Prints a Cup and Handle. How Will Affect Prices?

Cardano is seeing little volatility on Sunday but edges closer to reclaiming lost levels. Printing a green candle, it posts its second consecutive day of such a candle. 

Nonetheless, the latest attempt at recovery has yielded almost no results as the asset registered no significant price changes over the last 32 hours. It still rile from the effects of the significant selloff it experienced on Friday.

ADA retraced from $0.93 to $0.88, posting losses exceeding 3%. However, indicators on the 1-day chart are reacting to the drop in upward momentum. It is worth noting that the altcoin broke bollinger’s upper band twice in the last fourteen days. The first incident occurred on Sep 13, and the most recent incident took place on Thursday.

The first breakout resulted in a 7% decline, followed by a rebound, and the second has posted an almost 4% decline. The coin’s recovery at the time does not guarantee a change in the bearish trend that follows a breakout from the bollinger bands. The metric indicates a drop to the middle band.

Aside from the BB, the moving average convergence divergence prints sell signals at the time of writing. The indicator shows that the 12- and 26-day EMAs are in proximity as negative convergence nears completion. As with the previous trend, a crossover may trigger further price decline.

Away from the indicators, chart patterns present a positive outlook for how prices will perform in the coming days.

Cardano Prints a Cup and Handle 

The 1-day chart reveals the formation of two curved trendlines. The first started on Aug 16 and progressed with prices plummeting a few days later. A wave of gradual corrections and recovery later on formed the first curve. 

Cardano prints a second curve, but smaller than the previous one. Both trendlines form a cup-and-handle pattern, as seen in the image above. The formation is one of the most sought-after bullish patterns and has proven its effectiveness on multiple occasions. It remains to be seen if it’ll maintain the record, especially with indicators differing on next price actions.

Nonetheless, the altcoin is printing yet another positive chart formation. A closer inspection of the 1-day chart reveals that the asset has traded within two converging trendlines since late July. Nonetheless, the coin is edging closer to the tightest region of the triangle, indicating that a breakout is imminent.

Cardano exhibits no apparent signs of an impending breakout at the time of writing. This means that if there is no drastic change to current trading conditions, the altcoin will continue within this chart pattern, registering lower highs and higher lows.

How Prices Will React

The cup and handle pattern rules out any chance of an impending downtrend. If this holds, Cardano will break out from the bollinger bands, surging as high as $1. 

However, the asymmetrical triangle shows room for further price retracement. It also partially aligns with the readings from MACD and BB. It suggests that the asset may retrace below $0.850 within the next six days. A slip to this level will fulfill the predictions from the moving average convergence divergence.

Nonetheless, continuing the pattern may result in Cardano grappling with notable selling pressure at $0.90. It remains to be seen which of these patterns will play out in the coming days.

The post Cardano Prints a Cup and Handle. How Will Affect Prices? appeared first on Cointab.