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 ￰0￱ Is Retesting The Support Level Of A Parallel Channel In a new post on X, analyst Ali Martinez has shared a pattern forming in the daily price of ￰1￱ pattern in question is a Parallel Channel, a type of consolidation channel from technical analysis (TA). Related Reading: Bitcoin & Ethereum Social Sentiment Collapses, But XRP Just Sees Disinterest A Parallel Channel forms whenever an asset’s price trades between two parallel ￰2￱ 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 ￰3￱ the context of the current discussion, the simplest case of the Parallel Channel is of interest: a channel with a slope exactly equal to ￰4￱ type of pattern corresponds to a phase of true sideways movement in the asset’s ￰5￱ 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 ￰6￱ the price manages to break past one of these bounds, it may experience a continuation of trend in that ￰7￱ 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 ￰8￱ ADA started trading inside the channel back in November 2024, its price has rebounded at this line several ￰9￱ this pattern, it’s possible that the asset may find support at the mark once ￰10￱ only remains to be seen, however, whether the Parallel Channel will continue to hold or if a breakdown is coming ￰11￱ Reading: Altcoin Winter Here?

Ethereum, Solana Activity Plunges 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 ￰12￱ ADA’s channel, this pattern in the 3-day Ethereum price is a long-term one, beginning way back in ￰13￱ 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 ￰14￱ Price At the time of writing, Cardano is floating around $0.547, down over 16% in the last seven ￰15￱ image from Dall-E, charts from ￰16￱