Cardano (ADA) Price Prediction for December 31
ADA is the native token of the Cardano blockchain and the price is expected to continue falling in the coming days. This decline has been attributed to continued market uncertainty, the development of bearish price action, and negative sentiment across the cryptocurrency space.
As of December 31, 2024, most cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), are struggling to gain momentum.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA looks bearish in the short term. It has formed a descending triangle price action pattern on the daily time frame and is preparing to collapse. This pattern occurs after a bearish head and shoulders price action pattern is broken.
Based on historical price momentum, if ADA If it breaks through the support of the descending triangle and closes below the daily line of $0.825, it is very likely that it will fall by 10% in the future to reach the key support level of $0.75. However, the bearish outlook for ADA will only hold true if the daily candle closes below the $0.825 level; otherwise it could fail.
ADA loses $38 million
Despite the pessimistic outlook, long-term holders have shown strong interest and confidence in the token, reported on-chain analytics firm coin glass. ADA spot inflow/outflow data shows that the exchange witnessed $37.92 million worth of ADA outflows.
Outflow is an indicator that shows how much of an asset has been withdrawn from an exchange to a wallet address. This indicator also indicates potential upward momentum, buying pressure, and ideal buying opportunities.
In addition to participation from long-term holders, traders appear hesitant to open new positions when the price reaches key areas and is ready to collapse. As open interest reveals, this hesitation led to the liquidation of long positions worth millions of dollars. Data shows that ADA’s holdings fell by 3.9% in the past 24 hours.
Current Price Momentum
At press time, ADA was trading close to $0.8456, with the price down 3.15% in the past 24 hours. During the same period, its trading volume increased by 15%, indicating increased participation from traders and investors compared to the previous day.
