Cardano Forms Inverse Head and Shoulders Pattern Indicating Possible Price Reversal
Recent analysis indicates that Cardano is forming an inverse Head and Shoulders pattern on the daily chart, suggesting a potential bullish reversal after a downtrend. Key points include:
- The formation features a lower low (head) surrounded by two higher lows (shoulders).
- A breakout may occur if the price approaches the neckline around $0.774 with increased volume.
- The symmetry of the pattern adds credibility, with balanced shoulders enhancing the likelihood of an upside resolution.
- The neckline aligns with the 200-day moving average, marking a critical resistance zone.
- A daily close above this neckline would confirm the bullish trend shift.
- If confirmed, the price target could reach approximately $0.98, reflecting a significant recovery from recent lows.
Investors should monitor ADA's behavior around these levels for confirmation of the bullish scenario.
