Caldano (ADA) price has been stuck in a falling wedge pattern for almost two months. The token price is near the top of the pattern and is poised to break out. The winner of this tug-of-war will lead the next rally in ADA price.

Key Points.

  • Daily RSI K-line chart showing bullish divergence
  • ADA price is near the top of the wedge pattern
  • ADA tokens traded with an intraday volume of $613.7 million, a loss of 31.6%

Trading view K-line chart Source-Tradingview

On March 1, the Caldano (ADA) price retested the $1 breakout support level. The rejection of the token price from this level with an Evening Star candle pattern indicates that the previous support has turned into resistance.

The bear cycle has sent the cottage coin down 20%, retesting support at the January low near $0.77. In addition, the technical K-line chart shows ADA price near the top of a downward-sloping pattern. If buyers take advantage of this reversal pattern and break the upper trendline, the token price could spike by 22% ($1).

A possible rally would allow buyers to re-challenge the combined resistance of the $1 psychological level and the long-term trend line. A follow-through breakout is the key needed to anticipate a bullish recovery.

Contrary to the above assumption, if sellers break the support trend line of the wedge pattern. Selling pressure will intensify and dump the token to the $0.685 mark.

Technical specifications

The falling SMAs (20, 50, 100 and 200) signal a strong downtrend. In addition, the 20-day and 50-day SMAs provide dynamic resistance to prices.

Daily relative strength indicator showing positive divergence at the last three lows of the price action; this indicates an increase in potential bullish sentiment for the token, indicating a bullish breakout.

  • Resistance levels – $0.855 and $1
  • Support levels – $0.85 and $0.76