$164 Million Cardano (ADA) Outflow, Buy Opportunity?
ADA is the native token of the Cardano blockchain and has received a lot of attention from cryptocurrency enthusiasts despite recent price drops. The price of altcoins has fallen by more than 30% in the past 48 hours. However, its price appears to be recovering as interest increases from long-term holders and Binance traders.
ADA outflows $164 million
Today, December 20, 2024, coin glass The ADA spot inflow/outflow on-chain indicator shows that despite the continued decline in altcoin prices, the exchange recorded significant outflows of $163.85 million worth of ADA over the past week.
What does outflow mean in cryptocurrencies?
In the cryptocurrency world, an “outflow” refers to the movement of an asset from an exchange to the wallet addresses of long-term holders, indicating underlying upward momentum and suggesting ideal buying opportunities.
Based on historical data, whenever an asset flows from an exchange to a wallet address, it increases buying pressure, creating upward momentum.
Trader interest rises
As reported by Coinglass, in addition to rising interest from long-term holders, interest from traders appears to be increasing as well. Data showed that ADA futures open interest surged 4.5% in the past four hours, indicating a shift in trader sentiment as ADA prices rebounded.
Current Price Momentum
At press time, ADA was trading close to $0.887, with the price down 1.9% in the past 24 hours. During the same period, its trading volume surged 32%, indicating increased participation from traders and investors amid the market rebound.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA has successfully retested one of the key support levels at $0.80 hit during the recent market decline. However, the price is experiencing upward momentum as interest from traders and long-term holders increases.
Based on the recent price action, if ADA remains above the $0.80 level, there is a high chance that it will surge 40% to $1.23 levels in the coming days.
