As the weekend approaches, the cryptocurrency market is showing signs of recovery, with ADA, the native token of the Cardano blockchain, appearing bullish and poised for a significant rally in the coming days.
Cardano (ADA) Technical Analysis and Upcoming Levels
Expert technical analysis suggests that ADA has formed a bullish inverted head and shoulders pattern, indicating a potential breakout. If the asset breaches the pattern’s neckline and closes a four-hour candle above the $0.76 level, it could see a 10% increase to reach $0.85 in the near future.
However, ADA may face resistance from the 200 Exponential Moving Average (EMA), signaling a downtrend. The bullish scenario will only hold if ADA surpasses the $0.76 level; otherwise, the bullish outlook may falter.
On a longer timeframe, ADA has been consolidating within a tight range between $0.73 and $0.757 over the past five trading days. If the asset breaks out of this consolidation and closes a daily candle above $0.76, it could surge by 50% to reach $1.15 in the coming days.
Major Liquidation Levels
According to on-chain analytics firm Coinglass, traders are making strong bets on ADA, with over-leveraged positions at $0.723 and $0.765. At $0.723, traders hold $12 million worth of long positions, while at $0.765, $10.50 million worth of ADA tokens are being traded.
In conclusion, ADA is showing bullish signs and is potentially set for a significant rally in the near future. Traders should keep a close eye on key resistance levels and monitor price movements to capitalize on potential opportunities in the market.