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$ADA, the native token of the Cardano blockchain, is poised to continue its upward momentum after trading sideways for a week. On November 29, 2024, $ADA has formed a bullish price action pattern on a smaller time frame and is on the verge of a breakout.
This breakout could potentially propel $ADA’s price to a new high and attract new investors.
$ADA Price Action, Breakout Imminent?
According to expert technical analysis, $ADA has formed a bullish inverted head-and-shoulders price action, signaling a potential breakout.
Cardano ($ADA) Price Prediction
Based on recent price action and technical analysis, if $ADA breaches the neckline of the pattern and closes a four-hour candle above the $1.07 level, there is a strong possibility that it could soar by 15% to reach the $1.23 level in the coming days, and potentially even higher to $1.50 if the momentum remains unchanged.
On the positive side, $ADA’s Relative Strength Index (RSI) indicates that the altcoin has sufficient room for upward momentum in the coming days. The chart on the four-hour time frame shows that $ADA’s RSI is currently at 59, which is below the overbought zone of 70.
Bullish On-Chain Metrics
$ADA’s bullish technical outlook is further supported by large holders and traders. According to the on-chain analytics firm Coinglass, traders and investors are actively participating in the altcoin.
Coinglass’s $ADA spot inflow/outflow data indicates that whales and investors have significantly accumulated the token. Since November 17, 2024, $ADA has experienced negative net flow, meaning whales and traders have continuously withdrawn tokens from exchanges to their wallets.
This negative net flow is a bullish sign for token holders and suggests that a price decline is less likely in the coming days.
Additionally, traders also appear bullish, as indicated by the $ADA Long/Short ratio. This Coinglass metric currently stands at 1.10, reflecting strong bullish sentiment among traders. At present, 54% of top traders hold long positions, while 46% hold short positions.
Combining these on-chain metrics with technical analysis suggests that bulls are currently dominating the asset, which could support the altcoin in an upcoming bull run.
Current Price Momentum
At press time, $ADA is trading near $1.04 and has experienced an upside momentum of 2.5% in the past 24 hours. During the same period, its trading volume dropped by 40%, indicating lower participation from traders and investors compared to previous days.