Cardano’s native cryptocurrency, ADA, is on the brink of a significant price movement after a period of lateral trading. As of November 29, 2024, ADA has shown promising signs of a bullish price action pattern on shorter time frames, hinting at an imminent breakout. This potential breakout might drive ADA’s price to fresh highs, attracting a wave of new investors eager to capitalize on the opportunity.
ADA Price Action: Is a Breakout Imminent?
Technical analysts have identified a bullish inverted head-and-shoulders pattern in ADA’s price action, a classic signal for a potential breakout. This pattern, often recognized for its reliability, suggests that ADA could soon experience a substantial price surge. If the breakout materializes, it could mark a pivotal moment for ADA’s market performance, possibly setting the stage for a prolonged upward trajectory.
Cardano (ADA) Price Prediction
Recent technical analysis indicates that if ADA manages to break through the neckline of the current pattern and close a four-hour candle above the $1.07 mark, there is a strong likelihood of a 15% rally to approximately $1.23 in the near term. Should the upward momentum persist, ADA could even reach the $1.50 level. This bullish outlook is supported by ADA’s Relative Strength Index (RSI), which currently reads at 59, comfortably below the overbought threshold of 70, suggesting ample room for further upward movement.
Bullish On-Chain Metrics
ADA’s favorable technical setup is bolstered by robust on-chain metrics. Large holders and traders are showing increased interest in the altcoin, as reported by on-chain analytics firm Coinglass. Their data reveals a significant accumulation of ADA tokens by whales and investors. Since November 17, 2024, ADA has recorded a negative net flow, with tokens continuously being moved from exchanges to private wallets. This trend is a positive indicator for ADA holders, as it suggests a reduced likelihood of a price decline in the near future.
Furthermore, the ADA Long/Short ratio from Coinglass, a metric that gauges trader sentiment, currently stands at 1.10. This reflects a strong bullish sentiment, with 54% of top traders holding long positions compared to 46% with short positions. These on-chain metrics, in conjunction with technical analysis, indicate that bullish forces are currently dominating ADA, which could fuel an upcoming bull market for the altcoin.
Current Price Momentum
As of the latest data, ADA is trading near $1.04, experiencing a modest 2.5% increase in the past 24 hours. Although the trading volume has decreased by 40% during the same period, indicating reduced participation, the overall sentiment remains optimistic. This current momentum could be the precursor to a larger movement, as traders and investors reassess their positions in anticipation of a potential breakout.
In conclusion, the combination of bullish chart patterns, supportive on-chain metrics, and a favorable market sentiment positions ADA as a strong contender for a significant price rally. Investors should keep a close eye on ADA’s performance in the coming days, as the altcoin appears ready to embark on a promising upward journey.
