Over the past two weeks, Cardano (ADA) has experienced an impressive 125% rally. This notable surge in price suggests that ADA might continue its upward trajectory in the near future. With robust bullish price movements and a supportive market sentiment, ADA holders could see additional significant gains on the horizon.
Cardano (ADA) Technical Analysis and Upcoming Levels
The daily chart analysis of ADA reveals that the cryptocurrency is currently consolidating near a pivotal resistance level of $0.77. This consolidation has been ongoing for the last four trading days. Historically, when ADA consolidates around a key level, it often experiences a substantial rally shortly thereafter. Traders and investors are optimistic that this pattern will repeat, anticipating a strong momentum shift in the days ahead.
According to recent data and price trends, if ADA successfully breaks out of its current consolidation phase and closes a daily candle above the $0.78 threshold, it could potentially see a surge of 30%. This would propel its price to approximately $0.98, with the possibility of reaching the $1 mark in the near term.
At present, ADA is trading above the 200 Exponential Moving Average (EMA) on the daily chart, which is a clear indication of a prevailing uptrend. However, traders should note that the Relative Strength Index (RSI) is currently at 80.15, placing it in the overbought territory. This suggests a potential price correction or decline might occur. Despite this cautionary signal, the overall sentiment surrounding ADA remains bullish, indicating that the asset could surpass this level swiftly.
Bullish On-Chain Metrics
In addition to technical indicators, on-chain metrics further bolster ADA’s bullish outlook. On-chain analytics platform Coinglass reports a 5.90% increase in ADA’s open interest (OI) over the last four hours, with a 3.80% rise in the past hour alone. This significant increase in OI reflects heightened trading activity, suggesting aggressive participation amid a positive market sentiment.
Furthermore, ADA’s long/short ratio currently stands at 1.056, underscoring a robust bullish sentiment among traders. At the time of writing, ADA is trading at approximately $0.76, marking a 4.12% gain in the past 24 hours. However, it is worth noting that its trading volume has decreased by 27% in the same period, indicating a drop in participation from traders and investors.
In conclusion, Cardano (ADA) is poised for potential growth, supported by both technical analysis and favorable on-chain metrics. While traders should remain cautious of possible corrections, the overall bullish sentiment suggests ADA may continue its upward journey, offering promising opportunities for investors.
