As the native token of the Cardano blockchain, ADA is showing promising signs of a potential upward trend following a week of stable trading. November 29, 2024, marked a significant point for ADA, as it formed a bullish price action pattern on a smaller time frame, suggesting that a breakout is imminent. This anticipated breakout could drive ADA’s price to new heights, potentially attracting a wave of new investors.
ADA Price Action: Is a Breakout Imminent?
Technical analysis experts have identified a bullish inverted head-and-shoulders pattern in ADA’s recent price actions, indicating a potential breakout. This technical formation is often a precursor to upward price movement, signaling that the market sentiment might soon shift in favor of ADA, propelling its value upward.
Cardano (ADA) Price Prediction
Based on the current price action and technical indicators, if ADA manages to breach the neckline of the pattern and sustain a four-hour candle above the $1.07 mark, it could potentially rally by 15%, reaching approximately $1.23 in the coming days. If the bullish momentum continues, the price could even ascend to $1.50. Additionally, ADA’s Relative Strength Index (RSI), currently at 59, indicates there is ample room for upward movement, as it remains below the overbought threshold of 70, suggesting further gains are possible.
Bullish On-Chain Metrics
The optimistic technical outlook for ADA is further corroborated by on-chain data, particularly from large holders and traders. According to analytics from Coinglass, there is an active participation of traders and investors in ADA, which is a positive sign. The ADA spot inflow/outflow data from Coinglass reveals a significant accumulation of the token by whales and investors. Since November 17, 2024, ADA has experienced a negative net flow, indicating that large volumes of the token are being withdrawn from exchanges into private wallets. This movement is typically seen as a bullish signal, suggesting that a price decline is less likely in the near term.
Furthermore, the ADA Long/Short ratio, also analyzed by Coinglass, stands at 1.10, demonstrating strong bullish sentiment among traders. At present, 54% of top traders are holding long positions, compared to 46% with short positions, reinforcing the positive outlook for ADA.
Combining these on-chain metrics with current technical analysis, it appears that bulls are gaining the upper hand, which could support the altcoin in an upcoming bull run.
Current Price Momentum
As of the latest update, ADA is trading near $1.04, showing an increase of 2.5% over the past 24 hours. However, during the same timeframe, trading volume has decreased by 40%, reflecting a drop in participation from both traders and investors compared to previous days. This could indicate a consolidation phase before a significant price movement occurs.
Overall, the indicators and market sentiment suggest that ADA is on the cusp of a notable breakout, with the potential for substantial gains if bullish conditions persist. As always, investors should perform their own research and consider market risks before making any investment decisions.
