As we approach the end of 2024, Cardano’s native cryptocurrency, ADA, is facing a challenging phase in the market. The prevailing market sentiment is weighed down by continuous uncertainty, contributing to a bearish trend that could see ADA’s price dip further. This situation is part of a broader struggle affecting major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), all of which are finding it hard to gain upward momentum.
Cardano (ADA) Technical Analysis and Upcoming Levels
Technical analysts are closely watching ADA, noting a bearish outlook in the short term. The formation of a descending triangle pattern on the daily chart suggests a potential breakdown. This pattern follows a previously established bearish head-and-shoulders formation, signaling continued downward pressure.
Historical data indicates that if ADA fails to maintain support and closes a daily candle below the critical $0.825 threshold, it may experience a further 10% decline, potentially reaching the next significant support level at $0.75. However, should ADA hold above $0.825, the bearish scenario could be invalidated, offering a glimmer of hope for traders.
$38 Million ADA Outflow
Despite the bearish sentiments, there’s a silver lining in the form of strong interest from long-term holders. On-chain analytics from Coinglass reveal a substantial outflow of ADA from exchanges, amounting to $37.92 million. This metric indicates a significant withdrawal of ADA to private wallets, suggesting potential accumulation and a sign of confidence among long-term investors.
The outflow is a positive indicator, often interpreted as a precursor to upward momentum and buying pressure. However, it also underscores the cautious stance of traders who are hesitant to establish new positions while ADA’s price hovers near a critical juncture.
This hesitation is further reflected in the liquidation of long positions, as indicated by a 3.9% drop in open interest over the past 24 hours, suggesting traders are reevaluating their strategies in light of the current market dynamics.
Current Price Momentum
At the time of writing, ADA is trading at approximately $0.8456, having experienced a 3.15% decline over the last 24 hours. This decline comes amid a 15% increase in trading volume, signaling increased market activity compared to the previous day. The surge in volume suggests that traders and investors are actively engaging with ADA, possibly positioning themselves for potential market movements.
The coming days will be crucial for ADA as it navigates these technical and market challenges, with investors keeping a close watch on key support levels and overall market sentiment. Whether ADA will break through its current bearish patterns or find stability remains to be seen, but the developments are sure to be closely monitored by the cryptocurrency community.
