Cardano (ADA) Poised for 30% Rally, Here’s Why
ADA, the native token of the Cardano blockchain, is expected to continue its upward momentum as it has formed a bullish price action pattern. After a sharp rise, ADA appears to be consolidating in a tight range near strong resistance at $1.25 and is struggling to break above this level.
Cardano (ADA) Technical Analysis and Upcoming Levels
During this ongoing consolidation, CoinPedia’s technical analysts spotted a bullish flag and extreme price action pattern over the course of four hours. Based on recent price action, if ADA breaks this pattern and closes a four-hour candle above the $1.25 level, it could surge 30% to $1.63 levels in the coming days.
Currently, the asset’s relative strength index (RSI) stands at 54, which is below overbought territory, indicating that ADA still has room to rise in the coming days. RSI is a technical indicator used to determine whether an asset is in overbought or oversold territory, helping traders and investors make informed decisions.
ADA outflows $98.4 million from exchanges
Based on this bullish technical analysis, investors and whales appear to be showing strong interest in altcoins, according to a report from Onchain Analytics coin glass. ADA spot inflow/outflow data shows that the exchange experienced a large outflow of ADA worth $98.37 million.
This significant outflow indicates that whales, institutions, or retail investors are collectively moving large amounts of ADA from exchanges into their wallets. Historically, this type of activity on exchanges has typically signaled upward momentum, provided potential buying opportunities, and reduced the likelihood of a price decline.
Combining these on-chain indicators with technical analysis suggests that bulls are currently in control, which could support a breakout of ADA resistance at $1.25.
Current Price Momentum
At press time, ADA is currently trading near $1.22, with prices up 1.5% in the past 24 hours. However, its trading volume fell by 20% during the same period, indicating that trader and investor participation was lower than the previous day.
