ADA, the native token of the Cardano blockchain, shows strong potential for further growth after trading sideways for the past week. On November 29, 2024, ADA formed a bullish price pattern on a shorter time frame, signaling a potential breakout that could attract new investors.
ADA Price Pattern: Opportunity or Risk?
According to technical analysis, ADA has formed a bullish "head and shoulders" pattern, which suggests the possibility of a significant price breakout.
Price Prediction: If ADA breaks the pattern's neckline and closes a four-hour candle above $1.07, it has a high chance of rising by up to 15%. This could push the price to $1.23, with further momentum potentially driving it to $1.50.
A positive technical indicator is ADA's Relative Strength Index (RSI), currently at 59. This level is below the overbought zone (70), indicating room for further upside movement.
On-Chain Metrics Show Bullish Sentiment
The bullish outlook for ADA is further supported by on-chain data. According to the analytics platform Coinglass, whales and investors are actively contributing to ADA's positive sentiment.
Negative Net Flow: Since November 17, 2024, ADA has experienced a negative net flow, meaning large investors are withdrawing tokens from exchanges to their wallets. This is considered a bullish signal, as it reduces the likelihood of price drops.
Long/Short Ratio: The current Long/Short ratio for ADA stands at 1.10, with 54% of traders holding long positions versus 46% holding short positions. This reflects trader confidence in further price growth.
Current Price Momentum
At the time of writing, ADA is trading around $1.04, showing a 2.5% increase in the past 24 hours. However, its trading volume has dropped by 40%, indicating lower activity among traders compared to previous days.
Conclusion
The combination of bullish technical indicators and on-chain metrics suggests that ADA has strong potential for continued growth. A breakout above $1.07 could trigger a significant price increase, while stable investor activity and whale accumulation provide a solid foundation for further gains.
#CardanoPredictions , #priceprediction , #Priceanalysis , #CryptoNewss , #CardanoADA
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“