Despite the bullish market sentiment in the cryptocurrency landscape, Cardano (ADA) is the only major cryptocurrency that has not experienced a significant upward rally.
However, this useless cryptocurrency is now poised for a remarkable rally, thanks to Donald Trump, whose presidential victory has changed market sentiment, leading to it breaking through a strong resistance level.
Cardano (ADA) Technical analysis and upcoming level
According to expert technical analysis, ADA has broken the steeply sloping trend line it has been facing since April 2024. This breakout occurred after 38 days of price consolidation, which is now considered a bullish sign.
As of now, ADA is facing resistance at an exponential moving average (EMA) of 200 on a daily time frame, further indicating a downtrend.
Following this breakout, experts suggest that there is a high possibility that ADA could rise by 30% to reach the $0.50 level in the coming days. However, this bullish thesis will only hold if ADA closes a daily candle above the $0.40 level; otherwise it may fail.
ADA’s price analysis
The possible reason for this breakout is the price increase and bullish market sentiment. Currently trading around $0.39, ADA has experienced a 12% price increase in the last 24 hours. During the same period, trading volume fell by 13%, indicating lower participation from traders and investors.
Bullish statistics in the chain
Moreover, this breakout has also attracted new positions in the past 24 hours. According to the on-chain analytics company Mint glassADA open interest has increased by 18% and continues to rise steadily. This increasing open interest indicates growing interest and confidence among traders in ADA and the coming price increase.
Meanwhile, ADA’s Long/Short ratio currently stands at 1.03, indicating strong bullish market sentiment among traders.
When on-chain metrics are combined with technical analysis, it appears that bulls are currently dominating the asset and could support ADA in its upcoming rally.
