Cardano (ADA) price is trading in a correctional channel and has formed a double bullish pattern.
Despite these signs, the price of $ADA fell below the required vertical support level. This means that a reversal will only be considered after the asset is re-pegged.
Cardano falls below important support level
Technical analysis of the daily calendar gives mixed signals. On the one hand, the price of ADA fell below the horizontal support area at $0.26. This area is very dangerous as it has been providing support since the small area was hit on June 10th. At this time, the price went up, established a long wick (marked with a green symbol on the chart) and remained firmly above it. However, since July 14, Cardano has been moving in a downward channel, which usually has a corrective pattern. If this is so, then the current stop cannot be considered the beginning of a new decline. In addition, on August 14, the price established a double bottom value and a difference in RSI (marked in green on the chart), which increases the likelihood of a collapse.
ADA exiting the channel could lead to a 30% retracement and another resistance at $0.32. However, if the price declines from the upper limit, it will face a 20% decline at the $0.20 support level.
ADA Pricing Looks Controversial
However, the six-hour period produces mixed results. First, price action shows both bullish and bearish signals. Although Cardano broke above the descending stop line in the short term, it is still trading below the $0.26 level.
The RSI is rising and forming a critical gap. However, it has not yet broken through the 50 level needed to support the uptrend.
Therefore, the price forecast for ADA in the future will determine whether the price will break out of the channel around $0.26 or fall.
