Cardano (ADA) Price Analysis: Bullish Breakout or Dip?
Cardano (ADA) Price Analysis: Bullish Breakout or Dip?
Cardano (ADA) has recently shown bullish momentum after a prolonged downtrend, attracting attention from traders and analysts. However, the question remains: will this rally continue, or will ADA face another dip?
On-Chain Metrics and Sentiment
- On-chain data indicates 72.30% of ADA traders are betting long, while 27.72% are short.
- AMBCrypto's analysis suggests bullish momentum, despite mild selling pressure.
A crypto expert highlighted a descending channel pattern on the ADAUSDT 3-day chart, suggesting a bullish breakout could be confirmed above $0.77.
Soaring TVL: A Bullish Signal?
Adding to the bullish sentiment, Cardano's Total Value Locked (TVL) is rising, suggesting increased on-chain activity. DEX Hunter noted that Cardano's TVL is trending toward a new all-time high.
Historically, increased TVL often correlates with price increases.
ADA Price Action and Technical Analysis
At the time of writing, ADA traded near $0.70, with a 6.50% surge in the past 24 hours. Trading volume increased by 45%, indicating significant market participation.
While AMBCrypto's analysis remains bullish, mild selling pressure is evident near the 200-day Exponential Moving Average (EMA) on the four-hour chart. This resistance level could trigger a pullback, potentially around 10%, similar to past instances.
[Insert image of Cardano (ADA) price action chart here]
Bullish and Bearish Scenarios
A closing 4-hour candle above $0.71 could propel ADA to $0.85 (an 18.5% increase). Conversely, failure to break above $0.71 might lead to a drop to $0.62 (approximately 10%).
The Binance Long/Short ratio stands at 2.61, clearly favoring long positions. This, combined with the positive on-chain data, suggests a bullish bias.
[Insert image of Binance ADAUSDT Long/Short ratio chart here]
Despite the selling pressure, the overall market sentiment for ADA remains bullish.
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