ADA could see itself having a price rally of 30% in the following days as it has construed a classic bullish pattern for reversal. This has been referred to as the triple bottom, as the pattern usually comes up at the end of a downtrend and consists of three constantly consecutive denominators that are printed atop the same level. This implies that the triple bottoms symbolize the inability of the seller to break below a specific level of support on three consecutive attempts, which would ultimately lead the way for buyers to start taking over.
ADA Needs A New Price High
In an almost perfect situation, the potential return of buyers back to the market would allow the instrument to retrace itself sharply towards a far higher level, which has been referred to as the neckline, which connects the highs of the last couple of rebounds. This move then follows through yet another breakout, wherein the price gets higher by as much as the distance between the neckline and the bottom of the pattern. Currently, the price of ADA has been pretty capable of painting the triple bottom halfway through, which it is now rebounding after forming through the third low.
The exact moment at which the price of ADA reversed itself was further accompanied by an increase in the volume of trading, which suggests that the rebound had quite enough backing from investors. Therefore, it can be understood that Cardano’s token does look pretty poised to get a runup towards a price of $1.40. Also, if the price keeps breaking down further above the level of the neckline, it will keep continuing to rally until it hits the price of $1.63.
This triple bottom scenario for ADA comes after the price of the altcoin went down by more than 60% from its earlier high of $3.16- which was achieved on the 2nd of September. It also came up as the token of Cardano ended up being one of the worst performers for the quarter dropping by 45.50%.