Time to Buy Cardano? $230M ADA Outflows Signal Bullish Rally
The recent election results have changed overall market sentiment. Among them, Cardano (ADA) has experienced significant gains along with other major cryptocurrencies and has gained significant attention from cryptocurrency enthusiasts.
Meanwhile, the altcoin’s momentum has soared by more than 272% in the past 30 days.
$231M outflows, is this a bullish sign?
Despite the strong upward momentum, on-chain indicators suggest that ADA may lead this rally in the coming days. According to on-chain analytics firm coin glassSince November 23, 2024, ADA’s spot inflow/outflow data shows that the exchange has seen significant outflows of $231 million.
Outflow is a term that defines the amount of an asset flowing out of an exchange. In the context of cryptocurrencies, outflows often lead to higher prices, reducing the likelihood of selling pressure and attracting investors and traders.
Current Price Momentum
Now, ADA It is currently trading near $1.20, with prices inching down 2% over the past 24 hours. However, during the Asian trading session, ADA hit a two-year high of $1.326.
Furthermore, its trading volume surged 8.5% during the same period, indicating a slight increase in trader participation amid ADA’s bullish outlook.
Cardano (ADA) Technical Analysis and Upcoming Levels
Despite these developments, experts say ADA currently faces strong resistance near $1.25 and appears to be struggling to break above this level. Based on the recent price action, if the altcoin breaks out and closes above the $1.30 level, a significant 32% upside momentum could emerge in the coming days.
Historically, whenever ADA price reaches or breaks through resistance, it tends to consolidate before a significant upward bounce occurs on the chart. Currently, increased whale interest and confidence in the coin is a potential sign of bullish momentum or a buying opportunity.
geopolitical uncertainty
However, today, December 3, 2024, market sentiment seems to be turning to the downside as South Korean President Yoon Seok-yeol declares emergency martial law. This major development triggered a significant sell-off in the asset over the past few hours. If this downward trend goes unchecked, ADA’s bullish thesis may be at risk of failing.
