ADA, the native token of the Cardano blockchain, has been trading sideways for a week but is now showing signs of a potential breakout. On November 29, 2024, ADA formed a bullish price action pattern on a smaller time frame, hinting at a possible surge in price that could attract new investors.
Technical analysis experts have identified a bullish inverted head-and-shoulders pattern in ADA’s price action, suggesting that a breakout may be imminent. If ADA manages to breach the neckline of the pattern and close a four-hour candle above the $1.07 level, it could potentially rise by 15% to reach $1.23 in the coming days. Further bullish momentum could push the price even higher to $1.50.
In addition to the technical indicators, on-chain metrics also point to a positive outlook for ADA. Data from Coinglass shows that large holders and traders have been accumulating ADA, with whales and investors withdrawing tokens from exchanges to their wallets since November 17, 2024. This negative net flow indicates strong support for the token and suggests that a price decline is less likely in the near future.
Furthermore, the ADA Long/Short ratio, which reflects the sentiment of top traders, currently stands at 1.10, indicating a strong bullish sentiment among traders. 54% of top traders hold long positions, while 46% hold short positions, further supporting the bullish outlook for ADA.
Taking into account these on-chain metrics and technical analysis, it appears that bulls are currently dominating ADA, setting the stage for a potential bull run. At the time of writing, ADA is trading near $1.04 with a 2.5% increase in price over the past 24 hours. However, trading volume has decreased by 40%, suggesting lower participation from traders and investors compared to previous days.
Overall, the combination of bullish technical indicators and on-chain metrics suggests that ADA is primed for further upside momentum and a potential breakout in the near future. Investors and traders may want to keep a close eye on ADA as it continues its upward trajectory on the Cardano blockchain.