Chart Unveils All Is it Time to Purchase Cardano ADA
Cardano’s (ADA) daily chart indicates that the current level is ideal for buying. Based on recent price action, ADA could see a price surge of more than 20% to reach $0.40. By combining liquidation data with technical analysis, it is clear that bulls are currently in control of the asset.
Following a price decline of nearly 20%, sentiment around Cardano (ADA) has started to shift from a downtrend to an uptrend due to its bullish price pattern. Since July 2024, whenever ADA’s price has fallen to the current level, buying pressure has resulted in an upward rally.
ADA’s daily chart shows that this is the fourth time in the past four months that the price has reached this support level, making it an attractive buying opportunity. Currently trading around $0.333, ADA has experienced a 2.25% price drop in the past 24 hours. However, its trading volume has increased by 26%, indicating strong participation from traders and investors who recognize the buying potential at this level.
From a technical analysis perspective, ADA appears bullish and is currently at a strong support level of $0.31. This level has consistently provided significant support for ADA since July 2024. It has also been observed that when the asset reaches this level, it often experiences a price surge of more than 20%.
Based on recent price action, there is a high likelihood that ADA could experience a significant price surge of over 20% to reach $0.40 in the coming days. Despite this bullish outlook, the ADA daily chart has formed a descending triangle pattern. If ADA achieves a 20% surge this time, the pattern will be breached, potentially leading to a notable upside rally to the $0.45 level.
The major liquidation levels currently stand at $0.323 on the lower side and $0.337 on the upper side, with traders over-leveraged at these levels, according to on-chain analytics firm Coinglass. If sentiment remains bullish and the price rises to $0.337, approximately $1.53 million worth of short positions will be liquidated. Conversely, if sentiment shifts and the price drops to the $0.323 level, approximately $1.99 million worth of long positions will be liquidated.
By combining the liquidation data with the technical analysis, it is evident that bulls are currently dominating the asset, further supporting the potential for an upside rally and a buying opportunity.
Tags: Cardano (ADA), Crypto news, Price Analysis