ADA, the native token of the Cardano blockchain, is showing strong signs of a bullish breakout on the daily time frame. The recent price action pattern suggests that ADA is poised for significant upside momentum in the coming days.
Cardano (ADA) Price Action and Upcoming Levels
Technical analysis indicates that ADA has formed a bullish Head-and-Shoulders pattern on the hourly time frame. This pattern is typically seen as a bullish signal by traders and investors, signaling a potential uptrend. With the recent price recovery, ADA has broken out of this pattern and closed an hourly candle above it, confirming the bullish momentum.
According to historical price trends, if ADA can maintain its position above the $0.95 mark, it could potentially surge by 25% to reach the $1.24 level in the near future. Additionally, on the hourly time frame, ADA has broken above the 200 Exponential Moving Average (EMA), further solidifying its bullish stance in the short term.
On-Chain Metrics Bullish Sentiment
On-chain analytics firm Coinglass has reported that traders on Binance have built strong long positions in ADA, indicating a bullish sentiment in the market. The Binance ADAUSDT long/short ratio currently stands at 3.75, with 78.96% of top traders holding long positions and 21.04% holding short positions.
Furthermore, open interest in ADA has increased by 9.89% in the past 24 hours, suggesting that traders are actively building new positions. Traders seem to be over-leveraged at the $0.908 mark, where bulls have accumulated significant long positions worth $22.40 million. Short sellers, on the other hand, appear to be over-leveraged at the $1.02 mark, with $3.87 million worth of short positions.
Current Price Momentum
At the time of writing, ADA is trading near $0.999 and has experienced a price surge of over 7.5% in the past 24 hours. Despite the positive price action and breakout, ADA’s trading volume has decreased by 44% during the same period, indicating lower participation from traders and investors.
In conclusion, ADA’s recent breakout from a bullish price action pattern, combined with strong on-chain metrics and bullish sentiment among traders, suggests that the cryptocurrency is likely to experience further upside momentum in the near future. Traders and investors should keep a close eye on the $0.95 level as a key support area, with the potential for ADA to reach the $1.24 level in the coming days.