Cardano (ADA) has rallied 125% in the past two weeks and is poised to continue its upward momentum in the coming days. With its strong bullish price action, there is a strong possibility of notable gains for ADA holders.
Cardano (ADA) Technical Analysis and Upcoming Levels
Based on the daily chart, ADA appears to be consolidating near a crucial resistance level of $0.77 over the past four trading days. Historically, whenever the ADA price consolidates near a key level, it tends to rally significantly. ADA is trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend. However, its Relative Strength Index (RSI) signals a potential price correction or decline, as its value of 80.15 is in overbought territory.
Bullish On-Chain Metrics
Besides technical analysis, on-chain metrics further support the asset’s bullish outlook. According to on-chain analytics firm Coinglass, ADA’s open interest (OI) has increased by 5.90% in the past four hours and 3.80% in the past hour. This notable rise in OI indicates heightened trader activity, signaling aggressive participation amid a bullish sentiment. ADA’s long/short ratio currently stands at 1.056, reflecting a strong bullish sentiment among traders.
Key Insights and Outlook
At press time, ADA is trading near $0.76 and has gained over 4.12% in the past 24 hours. However, during the same period, its trading volume dropped by 27%, indicating lower participation from traders and investors.
In the coming days, ADA may continue its upward movement with favorable market sentiment and technical indicators. Traders should watch current market levels and potential price movements.
