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- COTI has received $500,000 from cFund, marking the first investment made by the venture fund backed by Cardano, the network behind the current seventh-largest cryptocurrency by market capitalization.
- The previously formed ascending triangle has been disrupted due to the sideways movement.
- Price is moving in a range between two Fibonacci levels.
ADA had formed a decent ascending triangle, but due to recent sideways consolidation and price moving in a range between Fibonacci levels of 0.382($1.13) and 0.236($1.27). This movement did not give many opportunities to trade as the price was almost moving like a straight line. The support trend line is still intact, which might help the price move up again. The market capitalization of ADA is $38,404,325,248 (-3.47%) and the 24 hour volume is Volume $3,950,294,555 (-41.20%). The volume of coins is below average, which is a usual case in consolidation.
WILL THE CONSOLIDATION HELP TRIANGLE PATTERN?
A support trendline and a support zone from $1.03 and $1.07 are present below the consolidation range, which could help in regaining the triangle pattern; however, as it happens in range, the price can move in either direction and therefore, early traders must be very very careful before picking aside. Fibonacci level of 0.236 has provided an excellent resistance for quite some time now, and hence, if the price breaks this level, one could think of the next target as the resistance level around $1.46.
Another support level is $0.80 below the previously mentioned support zone.
50 EMA (orange) is above 200 EMA (red), indicating a bullish trend, but the distance between the two EMAs has reduced significantly over the past month, which could bring the possibility of a bearish crossover.
As previously mentioned, the volumes are on the lower side due to the consolidation.
CONCLUSION-
Consolidation ranges are double-edged. One must wait till a breakout is seen. An upside breakout will definitely help with regaining the triangle pattern, but the possibility of a downside breakout can not be neglected either. A possibility of crossover must also be kept in mind. Fibonacci levels will help in better decision-making.
Side note: Upcoming news could provoke sudden moves.
Support levels: daily timeframe – Fibonacci level 0.382 ($1.39)
4 hour timeframe – support zone from $1.03 and $1.07, 200 EMA, $0.80
Resistance level – $1.46
