Cardano (ADA) is poised for a massive rally potentially following its recent descending trendline breakout in this ongoing market reversal. In addition to the trendline breakout, ADA has also formed a bullish cup-and-handle price action pattern on the daily timeframe and is on the verge of a breakout.

Cardano (ADA) Technical Analysis and Upcoming Levels 

According to expert technical analysis, ADA is currently facing strong resistance near the $0.365 level. If it breaks this resistance level and closes a daily candle above the $0.366 level, there is a strong possibility that ADA could soar by 23% to reach the $0.44 level in the coming days.

Additionally, ADA is in a downtrend as it is currently trading below the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a downtrend. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.

Despite being in a downtrend, both bullish price action patterns on the ADA daily chart hint at potential buying opportunities and a significant upside rally in the coming days.

ADA’s Bullish On-chain Metrics 

On the other hand, Cardano’s (ADA) on-chain metrics further support this positive outlook. Coinglass’s ADA Long/Short ratio currently stands at 1.025, indicating bullish market sentiment among traders. Additionally, its future open interest has increased by 3.5% in the last 24 hours and has been steadily rising since the beginning of September 2024.

This growing interest from traders and investors suggests a buildup of more long positions, signaling a potential breakout from both patterns.

At press time, ADA is trading near $0.357 and has experienced a price surge of over 2% in the last 24 hours. During the same period, its trading volume dropped by 40%, indicating lower participation from traders.

Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0

CFN Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed