CandleFocus

Chart of the week: Cardano could jump 25%, here’s what to expect

Author: Content Editor
Cardano (ADA) experienced a significant rally, gaining 35% on November 10, and has held steady close to the $0.65 level. This surge coincided with Bitcoin, Ethereum, Dogecoin, and other leading cryptocurrencies following Bitcoin's all-time high on November 12. Open interest in ADA has increased by 15.51% in the past 24 hours, indicating demand and relevance for ADA in futures markets. On-chain indicators such as active addresses and whale transaction count have also shown positive trends, supporting potential gains in Cardano's price. Traders' profit-taking has reduced, reducing selling pressure on the token. Cardano's price trend is closely correlated with Bitcoin, and a correction in Bitcoin could impact Cardano. Cardano has been range-bound for six months but has recently broken out and is ready to test resistance at the March 2024 peak of $0.8104. If Cardano surpasses this level, the next resistances are at the May 2022 peak of $0.9058 and the psychologically important $1 level. The moving average convergence divergence indicator and the awesome oscillator indicate a positive momentum for Cardano's price trend. However, failure to close above the support level at $0.5785 could invalidate the bullish thesis. Derivatives market data shows a higher number of long positions compared to short positions, indicating traders' confidence in the token's short-term gain. The fear and greed index for Cardano shows "extreme greed," signaling caution among traders when adding to long positions.

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