Cardano (ADA) Price Forecast for January 12
ADA, the native token of the Cardano blockchain, is expected to see significant upward movement after breaking out of a bullish price pattern on the daily timeframe. The cryptocurrency market is recovering after a prolonged price decline, leading to a major rally in ADA and confirming the breakout.
Cardano (ADA) has formed a bullish Head-and-Shoulders pattern on the hourly timeframe, according to expert technical analysis. With the recent price recovery, ADA has broken out of the pattern and closed an hourly candle above it.
This bullish pattern is often seen as a buy signal by traders and investors, as it generally indicates bullish momentum. Based on historical price trends, if ADA remains above the $0.95 level, it could rise by 25% and reach $1.24 in the coming days.
On the hourly timeframe, this upward momentum has also broken above the 200 Exponential Moving Average (EMA), suggesting that ADA has turned bullish in the short term.
On-chain metrics show a bullish sentiment among traders on Binance, as reported by the on-chain analytics firm Coinglass. The Binance ADAUSDT long/short ratio currently stands at 3.75, indicating strong bullish sentiment. Additionally, 78.96% of top traders hold long positions, while 21.04% hold short positions.
Traders are continuously building new positions, leading to a 9.89% increase in open interest in the past 24 hours. This data suggests that traders are strongly bullish, which may explain the significant bets on long positions.
Currently, traders are over-leveraged at the $0.908 level, with bulls holding significant long positions worth $22.40 million. Short sellers, on the other hand, appear to be over-leveraged at the $1.02 level, with $3.87 million worth of short positions.
ADA is currently trading near $0.999 and has experienced an upside momentum of over 7.5% in the past 24 hours. However, despite the shift in market sentiment and the breakout, ADA’s trading volume has decreased by 44% during the same period, indicating lower participation from traders and investors.
Tags: Crypto news