ADA Price Set to Explode, Here’s What Data Says
ADA, the native token of the Cardano blockchain, is poised to see significant upward momentum as whales and investors show strong interest in the altcoin. This surge in interest was observed when the coin seemed to be struggling near strong resistance levels.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA has been consolidating within a tight range between $1.12 and $1.23 over the past week, approaching strong resistance at $1.24. However, the chart shows that since early November 2024, ADA has consolidated near different resistance levels four times before experiencing significant upward momentum.
This time, however, experts and investors expect similar upward momentum. Based on the recent price action, if ADA breaks out of this consolidation and closes the day above the $1.25 level, it has a good chance of surging 30% to $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 overbought territory and hinting at the possibility of a price correction in the coming days.
ADA outflows $121 million from exchanges
In addition to ADA’s bullish technical analysis, whales and institutions appear to be showing strong interest and confidence in the altcoin, reports Onchain Analytics coin glass. ADA spot inflow/outflow data shows that during this ongoing consolidation, the exchange witnessed a significant outflow of $121 million in ADA.
In the cryptocurrency world, outflows are the movement of assets from exchanges to wallet addresses, which is considered a bullish sign. This significant outflow also signals a potential buying opportunity, reducing selling pressure and signaling further upward momentum in the coming days.
The combination of these bullish on-chain indicators and technical analysis suggests that bulls are currently dominating the asset and could support ADA Breakout of the consolidation zone.
Current Price Momentum
At press time, ADA was trading near $1.18, with the price down 3.5% in the past 24 hours. During the same period, its trading volume increased by 30%, indicating increased participation from traders and investors compared to the previous trading day.
