Cardano (ADA) Price Prediction For January 12
ADA, the native token of the Cardano blockchain, is expected to see a significant increase in value after breaking out of a bullish price pattern. The cryptocurrency market has been experiencing a decline, but it is now starting to recover, leading to a major rally in ADA.
According to technical analysis, ADA has formed a bullish Head-and-Shoulders pattern on the hourly chart. With the recent price recovery, it has broken out of the pattern and closed above it. This pattern is often seen as a buy signal and suggests that ADA could increase by 25% and reach the $1.24 level in the coming days if it stays above $0.95.
On the hourly chart, ADA’s upward momentum has also surpassed the 200 Exponential Moving Average (EMA), indicating a bullish trend in the short term.
On-Chain Metrics Bullish Sentiment
Traders on Binance have shown strong bullish sentiment towards ADA, according to on-chain analytics firm Coinglass. Currently, the Binance ADAUSDT long/short ratio is at 3.75, with 78.96% of top traders holding long positions and 21.04% holding short positions. Open interest has also increased by 9.89% in the past 24 hours.
ADA’s Trader Over-Leveraged Levels
Traders are over-leveraged at $0.908, with significant long positions worth $22.40 million. Short sellers, on the other hand, are over-leveraged at the $1.02 mark, with $3.87 million worth of short positions.
This data indicates that traders are strongly bullish on ADA, which explains the large number of long positions.
Current Price Momentum
ADA is currently trading near $0.999 and has experienced a 7.5% increase in the past 24 hours. However, trading volume has decreased by 44%, indicating lower participation from traders and investors despite the positive price momentum.
Overall, ADA is expected to continue its upward trend in the short term, with the potential to reach $1.24 if it maintains its current levels.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
