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Key Insights:
- As ADA price appears to be retesting, 76.26% of Binance ADA traders are taking long positions.
- A crypto expert has made a bold prediction that Cardano price could soar to the $1.75 level.
- $2 million worth of ADA has left exchanges, hinting at potential accumulation by long-term holders.
ADA, the native token of the Cardano blockchain, seems to be preparing for a massive price uptick. As per recent data, traders, investors, and crypto experts have shown strong interest in the asset. Is an ADA price rally imminent? Check this analysis to find how Cardano price may perform.
Cardano Price Momentum
The rising interest in Cardano is potentially driven by the bullish price action pattern it has formed on its daily timeframe. However, the price has remained sideways over the past 24 hours, with no major changes recorded.
When writing, ADA price traded at $0.883, having slipped by a modest 1.80% in the same period. During this time, it has seen a decline in trader and investor participation. That resulted in an 18% drop in its trading volume in comparison to the previous day.
This decline in trading volume, along with the price drop, indicates weak downside momentum. It also suggests a lack of interest in participating in the asset.
Bullish On-Chain Metrics
The traders and investors who are participating in the token are strongly betting on the bullish side, as revealed by the on-chain analytics tool CoinGlass.
Given the current market sentiment, investors and long-term holders appear to be taking advantage of the ADA price dip by increasing their accumulation.
According to recent data, over $2.01 million worth of ADA tokens have been withdrawn from exchanges in the past 24 hours. This outflow of tokens from exchanges hints at potential accumulation. It could create buying pressure, leading to a further upside rally.
Not just that, traders have also shown remarkable interest in the token. CoinGlass data reveals that the Binance ADAUSDT Long/Short ratio was 3.21 at press time. That meant traders betting on long positions outnumbered those betting on short positions by 3.21 times.
Additionally, this on-chain metric further revealed that 76.23% of traders were betting on long positions, while 23.77% were on short positions.
However, as the ADA price seems to be recovering, nearly $5.24 million worth of short positions at $0.894 are at risk of liquidation, as the price could reach this level anytime soon.
If you look closely, the majority of activity was on the bullish side at the time of writing. It indicated that the bulls were currently dominating the asset.
Cardano Price Action and Expert Prediction
According to expert technical analysis, ADA price has recently broken out of a prolonged horizontal resistance level at $0.85. However, with the recent volatility, the asset has successfully retested that breakout and is now poised for a massive price uptick.
The price action at press time suggested that if ADA remains above the $0.84 level, it could potentially soar by 38% and reach the $1.15 level in the future. However, if sentiment shifts and the price falls below the breakout level, the bullish outlook could be invalidated.
The Relative Strength Index (RSI) of Cardano (ADA) was at 82, indicating that the price was in an overbought zone. It suggested the asset could face a correction before the next rally begins.
Given the current market sentiment, a crypto expert recently shared on X (formerly Twitter) that ADA price could reach the $1.75 level in the future.
However, this prediction is based on the three-day chart. The chart image shows that whenever Cardano’s price has broken out of a descending trendline, it has recorded an impressive rally. This time, it appears to be the third instance where ADA price may repeat history.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
