Despite the fact that Cardano was stuck in a tight channel in October, sellers were able to bust open the market cracks. Between the 27th and 28th of October, ADA lost nearly 13% of its value due to a symmetrical triangle breakdown, before a broader market recovery rescued the alt from monthly lows.
Despite the appearance of buy signals on the MACD and Awesome Oscillator, ADA needed to retake key zones before returning to a bullish bias.
ADA forecasted a possible 20% drop from a symmetrical triangle setup that lasted the entire month of October. As ADA fell below the critical $2.07 level, sellers were able to initiate a break from the pattern. Although ADA had yet to meet its $1.70 target, an early pushback offered at $1.90 allowed ADA to recoup $2 in the previous 24 hours. From here, a break above the 20-SMA (red) and $2.07 would allow ADA to re-establish itself at a strong support level and pursue higher price levels.
However, the Visible Range Profile showed that ADA was under a lot of sell pressure between $2.14 and $2.23, implying that its ascension would be more difficult. Once ADA makes inroads into the aforementioned region, another period of consolidation is likely before a clearer trend emerges. If ADA rises above $2.46 at any point, bulls will be in control and will immediately challenge $2.90.
On the other hand, if ADA closes below $1.90, it will continue to fall to $1.80. Due to a lack of strong support levels below $1.80, ADA may lose value all the way to $1.70 before any pushbacks occur.
The alt had fared the worst, according to ADA’s indicators, and was now on the mend. The RSI recovered from oversold territory and moved back towards the mid-line. A move above 50-55 would indicate market strength. Meanwhile, a bullish MACD crossover and consecutive green bars on the Awesome Oscillator set up a favorable near-term narrative.
As selling pressure in its market gradually subsides, ADA could trade near $2. If buyers take advantage of some buy signals present in the indicators, ADA could rise above $2.07 and re-enter the $2.14-$2.23 zone.