Cardano Potential Triple Bottom Pattern at $0.40Cardano's (ADA) daily chart highlights the prospects of a potential triple bottom pattern at the $0.40 psychological number. Additionally, a confluence of technical factors supports the bullish case scenario, including the RSI hidden divergence and the 3-months descending triangle.
ADA Triple Bottom
The daily technical picture reveals that ADA has carved out a double bottom at the $0.40 level and is now eyeing a third to complete a triple bottom bullish reversal pattern. Usually, there is symmetry between the 3 consecutive valleys, which means that we can expect the next bottom to materialize 62 days after the second bottom.
This implies that the final bottom can emerge on September 13. While we can't develop an exact date for the bottom, this is a rough approximation.
Descending Triangle
At the same time, ADA is trading inside a descending triangle as each successive bounce from the $0.40 becomes smaller and smaller. As the price compresses inside the descending channel, we can expect the price ranges to shrink as well.
This ultimately will lead to a breakout as prices move from small price ranges to large price ranges.
RSI Hidden Divergence
The hidden bullish divergence develops when the price makes a higher low, while at the same time the RSI oscillator makes a lower low. This is often perceived as a bullish signal.
When we have multiple confluence technical factors lining up, the bullish case scenario becomes much more relevant, and there is a higher chance that the price will work in favor of these signals.
