Over the past two weeks ISLAND The coin has trended sideways amid growing uncertainty in the crypto market. The formation of alternating green and red Candles shows clear dominance of both sides, while the 4-hour time frame chart shows this consolidation as the formation of the Flag Formation. Here is how this formation may further affect the projection of Cardano price in the near future.
Bull Formation Determines Extended Recovery
- It is possible that a breakout of the flag formation could set the ADA price for a 20% upside.
- A possible uptrend between the 100-200-day EMA will accelerate the buying momentum.
- Intraday trading volume on Cardano coin is $442 Million, indicating a gain of 16%.
In the midst of the rally in October and early November, Cardano’s price rose from $0.239 to $0.4. In this context, it recorded a growth of 71%. However, this significant growth changed direction after increasing uncertainty in the market.
The 4-hour time frame chart shows that this consolidation resonates between two converging trend lines indicating the formation of a famous bullish continuation pattern called FLAG. The ADA price, which has an intraday growth rate of 3.3%, recently recovered from the lower trend line of the formation and reached the current trading price of $0.368.
Until this formation is broken altcoin Its price will continue to trend sideways and shrink within a converging area. New entrants to the market should expect an upward break from the upper trend line of the formation.
Under the influence of this formation, ADA price has $0.457 and $0.557 as potential targets.
Will ADA Price Drop to $0.3?
On November 21, the crypto market turned red as new news spread regarding Changpeng Zhao’s resignation. In this context, ADA price also risks falling below the lower trend line of the formation. In such a case, sales momentum will accelerate. In this context, the price of the coin may decrease by 16% to $0.3.