Analytical account Rose Premium Signals highlights a potential triple-bottom formation for Cardano, suggesting a possible bullish reversal if key support holds.
Cardano (ADA) has experienced a significant price decline over the past week, dropping from over $0.70 on June 12 to just above $0.60 by June 18. As of today, ADA stands at $0.6203, reflecting a 13.77% drop over the past seven days.
Amid the consistent downtrend, prominent technical patterns have emerged in Cardano’s price action, with an analyst pointing to a potential triple-bottom formation.
Analysts Observe Triple Bottom Formation
Rose Premium Signals, a prominent analytical account on X, highlighted this pattern in a recent analysis.
The triple bottom is typically a bullish signal, formed when the price tests the same support level three times. ADA first reached a bottom at $0.51 on February 3, then revisited a similar level on April 7. Now, the price is approaching this key support zone again.
Falling Wedge Suggests Possible Bullish Breakout
Meanwhile, in addition to the triple bottom, a falling wedge pattern is also visible on the ADA chart, which may indicate a potential bullish breakout. A falling wedge occurs when price movements compress within two trendlines, with the expectation of a breakout once the upper trendline is breached.
ADA’s price has previously failed to break past the upper trendline on December 2, when the price hit $1.3, and again on March 3, when bullish momentum faltered at $1.17. However, the current price action within the falling wedge suggests that ADA could see an upward move once the price breaks the upper resistance.
Price Targets and Key Levels to Watch
Now, should ADA manage to hold the support and form a bullish weekly candle, there are several price targets to watch. The first target is around $1.0057, which represents an initial resistance level.
The second target sits at $1.2114, and the final target is $1.4329. This would require an approximate 131.4% price increase from the current $0.62 level.
Elsewhere, MasterAnanda, in his TradingView analysis, emphasized the importance of ADA reclaiming the $0.68 to $0.70 range. Currently, the 34-week exponential moving average (EMA34) sits at $0.70, and the 200-week moving average (MA200) is at $0.67. Reclaiming this range could be vital for ADA to reverse its prevailing bearish trend.
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