Can Cardano Bulls Push ADA Price to $2?
For some investors, Cardano’s recent drop below $1 seemed disastrous. However, ADA bulls appear to be unfazed by the slight decline as on-chain data suggests they may be preparing for another continued uptrend.
Below is an in-depth analysis explaining the development of altcoins.
Cardano investors maintain bullish belief
As of this writing, Cardano’s price is at $0.98 after a recent initial increase to $1.15. this slightly reduced Perhaps related to yesterday’s broader market decline, Bitcoin (BTC) fell below $95,000.
However, data from Coinglass shows that ADA spot inflows/outflows are at -$40 million at the time of writing, down from -$63 million on Monday, November 25. This shows that Cardano bulls withdrew approximately $100 million from exchanges in just two days
Typically, when a holder withdraws a coin from an exchange, it is a sign that they do not intend to sell, which may result in upward price pressure. Conversely, an increase in inflows indicates that holders are willing to sell, potentially causing the price to fall.
Therefore, if foreign exchange outflows continue to rise, then Cardano price may rebound In the short term. Another indicator predicting this move is the average dollar investment age (MDIA).
MDIA is the average age of all tokens on the blockchain weighted by their average purchase price. When it increases, it means that most coins are stagnant. Therefore, this makes large price swings challenging.
For Cardano, however, the 90-day MDIA dropped significantly, indicating an increase in trading activity for the previously dormant token. If this continues, ADA may find it relatively easy to trade higher whenever buying pressure increases.
ADA Price Prediction: The Uptrend Will Continue
4 hours ADA chart shows bull flag A bullish pattern is formed consisting of two rallies with a brief consolidation period in between.
The pattern begins with a sharp price increase, called a flagpole, driven by strong buying pressure. A pullback follows, forming a flag – a rectangular shape with parallel trend lines. Bull flags usually indicate that, after a consolidation, Prices may resume their upward trend Once the pattern breaks out.
Considering the current outlook, Cardano bulls may push the price above $1.15. If this happens, then ADA could rally towards the $2 mark. On the other hand, if Selling pressure increasesthe price may drop to $0.85.
Disclaimer
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