Cardano (ADA) is showing promising signs of a potential price surge, following a recent breakout from its descending trendline amidst the ongoing market reversal. Notably, ADA has also formed a bullish cup-and-handle pattern on the daily chart, indicating a possible breakout on the horizon.
Technical analysis points to strong resistance near the $0.365 level for ADA. However, if the price manages to break this resistance and close above $0.366 on a daily candle, ADA could potentially rally by 23% to reach $0.44 in the near future.
Despite currently trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, ADA is displaying bullish price action patterns that suggest lucrative buying opportunities and a significant upside movement in the days ahead.
Furthermore, on-chain metrics for Cardano (ADA) paint a positive picture. The ADA Long/Short ratio stands at 1.025, indicating a bullish sentiment among traders. Additionally, the future open interest for ADA has been steadily increasing, suggesting growing interest from investors and a potential breakout from the bullish patterns.
As of now, ADA is trading around $0.357 with a recent price surge of over 2% in the past 24 hours. Despite this, trading volume has decreased by 40%, signaling lower participation from traders. This combination of technical and on-chain indicators points towards a potential uptrend for ADA in the near future.
