The crypto market moves under pressure at the moment amid Fed Reserve’s tapering acceleration strategies. Meanwhile, Cardano forms a vital bullish reversal pattern, hinting at a potential 30% upswing in the upcoming days.
ADA’s Sharp Rebound Underway
The triple bottom typically forms after an asset reaches a downtrend’s end. It comprises three consecutive lows around the same zone. That means triple bottoms show sellers’ inability to crack a specific support floor with three attempts. That generally clears the way for buyers’ take over.
In lucrative cases, buyers’ return to the space allows the asset to surge sharply to a higher price zone, named ‘neckline,’ connecting highs of the past two rebounds. Another breakout accompanies this move, pushing the price as higher as the pattern’s neckline and bottom distance. For now, Cardano’s price has painted the triple bottom shape halfway, rebounding after the 3rd low.
ADA’s reversal level witnessed an increase in trading volume, indicating adequate buyers supporting the rebound. With that, Cardano seems ready for an upward trip towards $1.40. Further breaks past the neckline will see ADA rallying to $1.63. That is according to the triple bottom tale.
The possible triple bottom case came after Cardano’s price plummeted by over 60% from its ATH of $3.16, recorded this year. It also emerged as ADA coin joined the worst performers’ list on QTD (quarter-to-data), declining by almost 45.5%, higher than its top rival ETH (15% gains).
Cardano’s multi-month crash saw the alt’s daily RSI dipping into the oversold region. Moreover, the altcoin plunge translated to what seems like a reliable ‘accumulation area.’ The accumulation area and the Relative Strength Index also suggest a buying opportunity in the Cardano ecosystem, supporting the triple bottom case on the 4hr chart.
ADA Price Has Risks Still
Keep in mind that ADA plunged by 5.5% over the past day, mimicking the downward mode in the crypto market. BTC lost 3% while ETH plummeted by nearly 5% within the same time. If the assets fail to rebound and form a close beneath $1.18, it might drop towards the next Fibonacci support at 0.786 FIB level around $0.67.