Cardano (ADA) Bullish Breakout Coming Soon? Eyes on the 23% Rally
Cardano (ADA) is poised for a major rally following its recent downtrend line divergence in this ongoing market reversal. In addition to breaking out of the trend line, ADA has formed a bullish cup-and-handle price action pattern on the daily timeframe and is on the verge of a breakout.
Cardano (ADA) technical analysis and upcoming levels
According to expert technical analysis, ADA is currently facing strong resistance near the $0.365 level. If it breaks this resistance level and closes the daily candle above the $0.366 level, there is a good chance that ADA will rise by 23% to reach the $0.44 level in the coming days.
Additionally, ADA is currently trading below the 200 exponential moving average (EMA) on the daily time frame, indicating a bearish trend. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.
Although in a downtrend, both price action on the ADA daily chart shows buying opportunities and hints of a significant rally in the coming days.
ADA Bullish On-Chain Metrics
On the other hand, Cardano's (ADA) on-chain metrics further support this positive outlook. The Coinglass ADA Long/Short ratio currently stands at 1.025, indicating strong market sentiment among traders. Additionally, the futures open demand increased by 3.5% in the last 24 hours and has been growing steadily since early September 2024.
This increased interest from traders and investors suggests the construction of more long positions, which could result from both patterns.
At press time, ADA is trading at around $0.357 and has experienced a price increase of over 2% in the last 24 hours. During the same period, the trading volume decreased by 40%, indicating low participation of traders.
