Cardano (ADAUSD) Technical Analysis: Double Bottom Spotted!

Cardano could be done with its slide as price was unable to break below the .032 area in its last two attempts. This is leading to the creation of a double bottom classic reversal pattern, and price just needs to break past the neckline at .040 to confirm that an uptrend is in the works.

Cardano has already climbed past the 100 SMA as an early indication that bullish pressure is kicking in. However, the 100 SMA remains below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Then again, the gap between the moving averages is narrowing to signal slowing selling momentum.

RSI is turning lower from the overbought zone to indicate that sellers are ready to return and push price back down. Similarly stochastic is moving south so Cardano might follow suit, especially since a bearish divergence appears to have formed. Both oscillators have plenty of room to head lower so sellers could have the upper hand from here.

The mood in the cryptocurrency industry seems to have lightened up as newswires picked up on reports that institutions are still set to push through with their investments despite the bear market. Recall that the inflow of institutional investment is widely expected to be the catalyst for a big rebound in cryptocurrency prices.

Bloomberg recently reported that Nasdaq is set to roll out bitcoin futures, too. This could bring in more volumes and activity, thereby keeping prices supported. The pickup in bitcoin price has spilled over to its altcoin peers on renewed hopes that developments in the space could continue and that the market may have already reached a bottom.

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