ADA price up in 7 days, nearing breakout from descending trend line since May 20.
Technical indicators (OBV, Elder-Ray, Awesome Oscillator) signal bullish momentum.
Potential targets: $0.39 if breakout occurs.
Cardano (ADA) finds itself at a critical juncture as it approaches a potential breakout from a descending trend line that has constrained its price action since May 20.
Currently trading at $0.36, ADA has experienced a decline during this period, but recent market activity suggests a possible shift in momentum.
Over the past week, ADA has seen a 7% price increase, outpacing the broader cryptocurrency market’s growth. This resurgence in demand has brought the altcoin to the precipice of a significant technical breakthrough, with the one-day chart indicating a potential breakout above the long-standing resistance level.
OB indicator supports Cardano’s bullish outlook
The On-Balance-Volume (OBV) indicator provides compelling evidence of the growing buying pressure behind ADA’s recent price action.
With the OBV currently standing at 42.54 billion, this metric suggests that accumulation is outpacing distribution, reinforcing the bullish narrative surrounding Cardano.
Complementing the OBV, the Elder-Ray Index has maintained a positive stance throughout the recent uptrend. Currently registering 0.0088, this indicator affirms the dominance of buyers in the ADA market, signaling robust bullish momentum.
Source: Coinglass
Further bolstering the optimistic outlook, the Awesome Oscillator (AO) has displayed consistent upward-facing green histogram bars since August 25. This configuration typically indicates that the oscillator is above the zero line, confirming the prevailing bullish sentiment in the market.
Futures traders appear to share this optimistic stance, as evidenced by ADA’s positive funding rate of 0.0023%. This metric suggests a higher demand for long positions over short positions, reflecting widespread expectations of continued price appreciation among derivatives traders.
Looking ahead, ADA’s ability to sustain and build upon this bullish momentum will be crucial in determining its near-term trajectory.
