$ADA Bulls Are Back: Could This Be the Start of a Massive Rally?

#ADA has recently showcased signs of heightened volatility and potential bullish momentum on the 1-hour chart. A steady sequence of higher closing prices indicates growing confidence among buyers. The interplay between short- and medium-term moving averages further highlights this potential.

The 9 EMA has consistently stayed above the 20 EMA, reinforcing bullish momentum in the short term. This configuration suggests that upward price action may continue if the current market conditions hold. Adding to this, the MACD reveals a strengthening trend, with a positive histogram and a widening gap between the MACD and signal lines, signaling growing bullish sentiment.

The RSI has reached overbought territory several times but appears to stabilize, indicating strong demand while cautioning against potential pullbacks. Traders should closely watch resistance at $1.0749, with $1.0617 and $1.0508 serving as critical support zones. A breach above $1.0749 could set ADA on a path toward new highs, while failure to sustain current levels might lead to a retest of support.

For long trades, a breakout above $1.0749 with volume confirmation could present a strong entry point, targeting higher resistance zones. Conversely, short traders might consider entering positions near resistance levels if rejection signals appear, aiming for the lower support levels. Managing risks with stop-losses near key levels is crucial in both cases.