Cardano Retests Line That Has Triggered Strong Rebounds Since Nov 2024

An analyst has pointed out how Cardano is retesting a level that has helped the asset’s price rebound multiple times during the past year.Cardano Is Retesting The Support Level Of A Parallel ChannelIn a new post on X, analyst Ali Martinez has shared a pattern forming in the daily price of Cardano. The pattern in question is a Parallel Channel, a type of consolidation channel from technical analysis (TA).A Parallel Channel forms whenever an asset’s price trades between two parallel trendlines. If the channel has a positive slope relative to the graph axes, the pattern is called an Ascending Channel. Similarly, the trendlines pointing down create a Descending Channel.In the context of the current discussion, the simplest case of the Parallel Channel is of interest: a channel with a slope exactly equal to zero. This type of pattern corresponds to a phase of true sideways movement in the asset’s price.Just like other consolidation patterns in TA, the upper line of this pattern is also likely to be a source of resistance, while lower one that of support. If the price manages to break past one of these bounds, it may experience a continuation of trend in that direction. This means that a breakout above the channel can be a bullish signal, while a fall under it a bearish one.Now, here is the chart shared by Martinez that shows the Parallel Channel that the 1-day price of Cardano has been trading inside for the past year:As displayed in the above graph, Cardano has witnessed a plummet toward the Parallel Channel’s lower level situated at $0.52 with the recent downturn in the cryptocurrency sector.Since ADA started trading inside the channel back in November 2024, its price has rebounded at this line several times. Given this pattern, it’s possible that the asset may find support at the mark once more. It only remains to be seen, however, whether the Parallel Channel will continue to hold or if a breakdown is coming next.Speaking of Parallel Channels, Ethereum, the cryptocurrency ranked second by market cap, is also trading inside this type of pattern, as the analyst has pointed out in another X post.Unlike ADA’s channel, this pattern in the 3-day Ethereum price is a long-term one, beginning way back in 2021. ETH found rejection at the resistance of this Parallel Channel earlier in the year and has since been on the way down. “The worst-case scenario: Ethereum $ETH fails to reclaim $4,000, breaks through $3,800 support, and drops to $2,400 or $1,700,” said the analyst.ADA PriceAt the time of writing, Cardano is floating around $0.547, down over 16% in the last seven days.Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC