Cardano (ADA) Price Prediction For January 12
ADA, the native token of the Cardano blockchain, is poised for significant upward momentum after breaking out of a bullish price action pattern on the daily time frame. After a long period of falling prices cryptocurrency marketThe overall market is recovering, triggering a sharp rebound in ADA and confirming the breakout.
Cardano (ADA) Price Action and Upcoming Levels
According to expert technical analysis, ADA has formed a bullish head and shoulders price action pattern on the hourly time frame. With the recent recovery in price, it has broken out of the pattern and closed an hourly candle above it.
This bullish pattern is often considered a buy signal by traders and investors as it usually favors bullish momentum. Based on historical price trends, if ADA remains above the $0.95 mark, it could surge 25% to reach $1.24 levels in the coming days.
Looking at the hourly chart, this upward momentum is further above the 200 exponential moving average (EMA), indicating that ADA has turned bullish in the short term.
Bullish sentiment on on-chain indicators
Observing this bullish price action, traders on Binance have established strong long positions, reports on-chain analytics firm coin glass.
79% of ADA traders are long
Currently, the long-short ratio of ADAUSDT on Binance is 3.75, indicating strong bullish sentiment among traders. Further data revealed that 78.96% of the top traders currently hold long positions, while 21.04% hold short positions.
However, traders appear to be constantly opening new positions, causing open interest to increase by 9.89% in the past 24 hours.
Leverage levels for ADA traders are too high
As of now, traders are overleveraged at $0.908 and bulls have established massive long positions worth $22.4 million. Meanwhile, short sellers appear to be overleveraged at $1.02, with their short positions worth $3.87 million.
This liquidation data indicates that traders are strongly bullish, which may explain the heavy betting on long positions.
Current Price Momentum
Currently, ADA is trading close to $0.999, gaining more than 7.5% momentum in the past 24 hours. Despite the shift in market sentiment and the breakout, ADA’s trading volume fell by 44% during the same period, indicating lower participation from traders and investors.
