Cardano [ADA/USD] Technical Analysis: Price to see bullish breakout as long term triangle forms

Cardano [ADA] is currently feeling the brunt of the crypto-winter as it has declined significantly in value since its highs. However, this long-term downward movement might prove to be the catalyst for a breakout in the near future.

1 hour:

The 1-hour graph for ADA shows that there is an uptrend from $0.0715 – $0.0766, contrasted by a downtrend from  $0.0827 – $0.0786 – $0.774. Resistances are present at $0.0806 and $0.0827, with support levels at $0.0750 and $0.0715.

The Stochastic Momentum Indicator is tending towards the oversold zone after touching the overbought zone earlier in the week. It is still declining, representing a generally bullish consensus.

The MACD recently experienced a bearish crossover, with the histogram moving towards zero, hinting that the lines might move above the 0 mark.

1 day:

A long-term downtrend is present since the month of May as the price declined from $0.365 – $0.0771. There is a resistance present at $0.106, with support levels at $0.0634. This forms a descending triangle that is very close to the breakout point, with upwards momentum being supported by other indicators as well.

The Parabolic SAR is bullish, as seen by the presence of the dots under the candlesticks.

The RSI is resting in the middle, with the buying and selling pressure equalizing in the market.

The RVGI is demonstrating a bullish crossover and is moving upwards as the signal line moves sideways.

Conclusion:

The breakout came by the descending triangle formation might lead to a breakout in the price of Cardano in the short term, with this conclusion supported by various indicators. Resistance levels to be tested are at $0.0806, $0.0827 and $0.106.