ADA Breakout Alert, Cardano Set for 30% Rally

Published by

Zameer Attar

November 8, 2024

Despite the bullish market sentiment across the cryptocurrency landscape, Cardano (ADA) has been the only major cryptocurrency that has not experienced a significant upside rally.

However, this idle cryptocurrency is now poised for a notable rally, thanks to Donald Trump, whose presidential win has shifted market sentiment, leading to the breakout of a strong resistance level.

Cardano (ADA) Technical Analysis and Upcoming Level

According to expert technical analysis, ADA has broken out from a strongly inclined trendline that it has been facing since April 2024. This breakout occurred after 38 days of price consolidation, which is now considered a bullish sign.

As of now, ADA is facing resistance from a 200 Exponential Moving Average (EMA) on a daily time frame, which further indicates a downtrend.

Following this breakout, experts suggest that there is a strong possibility ADA could soar by 30% to reach the $0.50 level in the coming days. However, this bullish thesis will hold only if ADA closes a daily candle above the $0.40 level; otherwise, it may fail.

ADA’s Price Analysis

The potential reason for this breakout is the price surge and the bullish market sentiment. Currently, ADA is trading near $0.39 and has experienced a price surge of 12% over the last 24 hours. During the same period, its trading volume decreased by 13%, indicating lower participation from traders and investors.

Bullish On-Chain Metrics

Additionally, this breakout has also attracted new positions in the past 24 hours. According to the on-chain analytics firm Coinglass, ADA’s open interest has jumped by 18% and continues to rise steadily. This increasing open interest suggests growing trader interest and confidence in ADA and its upcoming price rally.

Meanwhile, ADA’s Long/Short ratio currently stands at 1.03, indicating a strong bullish market sentiment among traders.

When combining on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset and could support ADA in its upcoming rally.

Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.