Cardano (ADA) rally preparations have begun.

Cardano (ADA), which has attracted attention with its short-term rise, has winked at the bull season.

Cardano's native token $ADA is preparing to show upward momentum after a week of sideways movement. As of November 29, ADA has formed a bullish price action pattern and seems ready for an uptrend. This potential breakout could push ADA's price to a new high and increase investor interest.

According to the latest price action and technical analysis, if ADA breaks the neckline of this pattern and achieves a four-hour candle close above $1.07, the price is likely to rise to $1.23 in a few days with a 15 percent increase. If the upward momentum continues, the ADA price could rise to $1.50.

On the positive side, ADA's Relative Strength Index (RSI) shows that the altcoin has enough room for an upward movement in the coming days. On the four-hour chart timeframe, ADA’s RSI is currently at 59, below the overbought 70.

ADA is currently trading at $1.04 and has gained 2.5 percent over the past 24 hours. During the same period, trading volume has dropped by 40 percent, indicating lower trader and investor participation compared to previous days.

ADA’s technically positive outlook is also supported by large investors and traders. According to Coinglass’s onchain data, investors are showing interest in the popular altcoin.

Coinglass’s Cardano spot inflow/outflow data shows that whales and investors have been accumulating the token significantly. Since November 17, 2024, #ADA has been experiencing negative net flow, indicating a continuous withdrawal of tokens from exchanges to wallets. This negative net flow is a positive sign for token holders and suggests that a price drop is less likely in the near future.

Additionally, Cardano traders appear to be generally bullish. Coinglass’s ADA Long/Short ratio currently stands at 1.10, reflecting strong bullish sentiment among traders. Currently, 54 percent of top traders are long and 46 percent are short.