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Cardano (ADA) is highly volatile, as analysts have predicted that it could fall in the short-term and rise in the long term.
A crypto analyst Kenshiyesreel, has taken a short position on ADA, which aims to pull the price back towards the $0.45-$0.50 region for accumulation.
However, other technical indicators like the Golden Cross suggest that ADA could continue with its bullish run if it stays above critical support levels.
Short-Term Correction for Long-Term Gains
Kenshiyesreel’s analysis is about the current price action of ADA with a completed “falling wedge” pattern implying a reversal up.
I've shorted $ADA #Cardano at this price with a target of $0.45-$0.50 to accumulate more on spot https://t.co/F4EBVB7x1N pic.twitter.com/WZf1ZlZucM
— Yesreel (@kenshiyesreel) November 15, 2024
He also suggests that there can be a short-term dip, which will provide the ideal entry point for purchase at between $0.45 and $0.50, and an ADA may experience selling pressure. The analyst also set a target of $1.2 if the upward trend continues after a pullback.
Daily Chart Highlights Bullish Indicators Amid Buying Pressure
In the daily chart pattern analysis, recent formation of the golden cross, where the short-term moving average crossed above the long-term moving average, also portrays a bullish pattern.
ADA’s price surged to a high of $0.63 then retraced to $0.5947 and traded above both the 9-day and 21-MA. Possible support levels are around $0.5464 and $0.4663 if the price turns bearish.
The Money Flow Index (MFI) is 69.66, indicating the markets are bullish but the index is getting close to being overbought. When the MFI reaches 70, it could indicate a bearish reversal if buying pressure drops.
The balance between buying strength and overbought risk indicates that ADA may experience short-term volatility, while long-term indicators still suggest a positive outlook.
ADA’s Key Support Levels and Potential for Bullish Breakout
In case ADA support holds above $0.5464 it might propel to break the recent high of $0.63 up to the $0.70 resistance level.
Prices above $0.63 could drive the price higher, supporting the medium-term bullish outlook. However, if ADA loses support around $0.5464, a drop to the 21-day moving average at $0.4663 could occur, signaling a deeper retracement.
Additional evidence from the analyst chart shows that Fibonacci retracement levels of 50% and 61.8% support these zones as buy levels.
Kenshiyesreel’s short position and $0.45-$0.50 accumulation target fit within these retracement levels, indicating that this price area could attract buying interest.
Analyst Ali also shared his predictions about ADA price. According to the analyst Cardano has the potential to hit a price of $6 by July-September next year, 2025.