Rally preparation has started in Cardano (ADA)

Cardano (ADA), which attracted attention with its rapid rise, winked at the bull season.

Cardano's native token ADA is preparing to show upward momentum after a week of horizontal movement. As of November 29, ADA has formed a bullish price action pattern and appears ready for an upward trend. This potential breakout could take ADA's price to a new high and increase investor interest.

Cardano (ADA) price prediction

According to the last price movement and technical analysis, if ADA breaks the neckline of this pattern and closes a four-hour candle above $1.07, it is likely that the price will rise by 15% to $1.23 within a few days. If the upward momentum continues, ADA price could rise to $1.50.

On the positive side, the Relative Strength Index (RSI) of ADA shows that the altcoin has enough room for upward movement in the coming days. On the four-hour chart time frame, ADA's RSI value is currently at 59, which is below the overbought zone of 70.

ADA is currently trading at $1.04 and has risen by 2.5% in the last 24 hours. During the same period, trading volume decreased by 40%, indicating lower trader and investor participation compared to previous days.

What do on-chain metrics show?

ADA's technically positive outlook is also supported by large investors and traders. According to Coinglass' onchain data, investors are showing interest in the popular altcoin.

Coinglass's Cardano spot entry/exit data shows that whales and investors are accumulating the token significantly. Since November 17, 2024, ADA has been exhibiting a negative net flow, indicating a continuous withdrawal of tokens from exchanges to wallets. This negative net flow is a positive sign for token holders and indicates that a price drop is less likely in the near future.

In addition, Cardano traders are generally seen to be in an upward trend. The ADA Long/Short ratio on Coinglass is currently at 1.10, reflecting a strong bullish sentiment among traders. Currently, 54% of high-level traders are in long positions, while 46% are in short positions.

The combination of technical analysis of metrics on this chain indicates that bulls currently dominate ADA and could support an upcoming bull run.

This article does not contain investment advice or recommendations. Every investment and trading activity carries risk, and readers should conduct their own research when making decisions.