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- ADA has risen 6% in the last 24 hours, making it the most successful among the top 20 cryptocurrencies by market cap.
- The currency can run to $0.2772 resistance if the rally continues.
Cardano (ADA) is making recent gains, trading above $0.25 since Monday after posting a small recovery last week. A combination of strong signals on the chain and improving derivatives suggests that the uptrend may continue. Technical indicators are also showing strong growth, bolstering the case for a long-term rally.
On-chain content and derivatives are based on Cardano
Data from Santiment’s Social Dominance metric support the motivational hypothesis. This indicator monitors the volume of ADA-related discussions throughout the crypto community. It rose as much as 0.206% on Monday, reflecting market sentiment and improving sentiment among investors.
For futures, CoinGlass shows Cardano’s long-short ratio at 1.01. A reading above 1 indicates that many traders are standing, indicating a bias in the market.
Meanwhile, Cardano’s coin price changed on Thursday and has continued to rise, reaching 0.0076 on Monday. Positive cash flows indicate that those with long positions are paying short positions, a sign of strong demand. Historically, a similar transition from non-financial to positive, followed by inflation, has been associated with ADA inflation.
Cardano Price Prediction: ADA can increase the profit to $0.2772
The ADA/USD 4-hour chart is bearish and supportive as Cardano is trading above $0.25 on Monday. The long-term bias is slightly lower as the price continues to increase, nearing critical resistance at the 50-day EMA at $0.27. A burst indicates upward movement.
Meanwhile, the rapid signs have changed. The Relative Strength Index (RSI) on the 4-hour chart at 67 leans bullish, indicating buying pressure.
The Moving Average Convergence Divergence (MACD) indicator has retraced above the zero line below zero, indicating a bearish trend.
If the market corrects, ADA may retest the first major support at $0.24. A breach of this support level would signal the $0.22 low that buyers had previously discovered.
However, if the rally continues, ADA may move past resistance at $0.2772, in line with its 50-day EMA. A daily break above this level could see ADA rise to the $0.2991 resistance level.
