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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.