- Cardano could rally by 15% to reach the $1.24 level if it closes a four-hour candle above the $1.07 level.
- ADA’s Spot Inflow/Outflow data showed that exchanges have experienced a significant outflow of $203.2 million.
After trading sideways for a week,Cardano [ADA], the native token of the Cardano blockchain, is now poised for an upside rally. During this consolidation, ADA formed a bullish pattern and has now broken out.
Other factors supporting ADA’s bullish outlook include strong trader and whale confidence in the token and a positive shift in market sentiment.
Cardano’s technical analysis and key levels
According to AMBCrypto’s analysis, ADA has broken out of a bullish inverted Head-and-Shoulders price action pattern.
If ADA successfully breaches and closes a four-hour candle above the $1.07 level, it could rally by 15% to reach the resistance level of $1.24. Likewise, if this level is breached, ADA could gain another 25%, potentially reaching $1.52 in the coming days.
Source: TradingView
On the positive side, ADA’s Relative Strength Index (RSI) suggested that the altcoin has enough room to rally. At the time of writing, the RSI stood at 60, below the overbought territory, which could potentially attract both investors and traders.
Whale activity supporting ADA price surge
Besides technical analysis, traders and long-term holders (whales/investors) are actively participating in the altcoin, as reported by Coinglass.
Coinglass’s ADA Spot Inflow/Outflow data shows that, since the 23rd of November 2024, exchanges have experienced a significant outflow of $203.2 million.
In cryptocurrency, the outflow of tokens is considered a positive sign. This indicates that whales are withdrawing tokens from exchanges in their wallets.
Source: Coinglass
Rising open interest and bullish sentiment
Along with whale activity, traders have also shown strong participation. Coinglass’s data shows that ADA’s Open Interest (OI) surged by 12.9% in the past 24 hours and 3.75% in the last four hours.
The growing OI, significant outflow, and bullish price action of ADA indicate strong support from the bulls. This could drive the price to soar significantly in the coming days.
Read Cardano’s [ADA] Price Prediction 2023-24
At press time, ADA was trading near $1.07, with a price gain of over 6.45% in the past 24 hours.
However, its trading volume dropped by 30% during the same period. This indicates lower participation from traders and investors compared to the previous day.
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