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ADA, the native token of the Cardano blockchain, is poised for notable upside momentum as whales and investors show strong interest in the altcoin. This surge in interest was observed when the token appeared to be struggling near a strong resistance level.
Cardano (ADA) Technical Analysis and Upcoming Level
According to expert technical analysis, ADA has been consolidating within a tight range between $1.12 and $1.23, near a strong resistance level of $1.24, for the past week. However, the chart shows that since the beginning of November 2024, ADA has consolidated near different resistance levels four times before experiencing massive upside momentum.
This time, however, experts and investors are anticipating a similar upside momentum. Based on recent price action, if ADA breaks out of this consolidation and closes a daily candle above the $1.25 level, there is a strong possibility it could soar by 30% to reach $1.65 in the coming days.
On the other hand, ADA’s Relative Strength Index (RSI) currently stands at 71, indicating that it is in an overbought zone and suggesting a potential price correction in the coming days.
$121 Million in ADA Outflow From Exchanges
In addition to ADA’s bullish technical analysis, whales and institutions appear to have shown strong interest and confidence in the altcoin, as reported by the on-chain analytics firm Coinglass. Data from ADA’s spot inflow/outflow revealed that exchanges have witnessed a significant outflow of $121 million in ADA during this ongoing consolidation.
In the cryptocurrency context, outflow refers to the movement of assets from exchanges to wallet addresses, which is considered a bullish sign. This notable outflow also suggests a potential buying opportunity, reduces selling pressure, and indicates further upside momentum in the coming days.
The combination of these bullish on-chain metrics and technical analysis indicates that bulls are currently dominating the asset and could support ADA in breaking out of the consolidation zone.
Current Price Momentum
At press time, ADA is trading near $1.18 and has registered a price decline of 3.5% in the past 24 hours. During the same period, its trading volume increased by 30%, indicating heightened participation from traders and investors compared to the previous day.