After enduring a two-week phase of narrow consolidation, ADA, the native token of the Cardano blockchain, appears set for a significant upward movement. The bullish price action pattern suggests potential gains, albeit following a substantial price correction that began in December 2024. During this period, ADA faced persistent resistance from a trendline, resulting in a price drop exceeding 42%.
Will ADA’s Recent Rally Continue?
Despite these challenges, long-term holders and whales seem to have taken advantage of ADA’s perceived discounted price, significantly accumulating the altcoin. Coinglass, an on-chain analytics firm, reports this trend aligns with recent observations where traders monitor ADA’s key levels post-correction to identify potential buying opportunities.
Over the past week, ADA’s spot inflow/outflow data indicates exchanges have seen an outflow of approximately $37.18 million worth of ADA. This substantial outflow suggests that long-term holders are accumulating during this consolidation phase. The sentiment around ADA currently shows a shift towards an uptrend, with the token experiencing a price surge of over 15% in the past 48 hours.
Cardano (ADA) Technical Analysis and Current Price Momentum
As of now, ADA is trading around $0.96, marking an impressive 8.5% rally in the last 24 hours. This upward movement has resulted in a breakout from the prolonged consolidation phase and the trendline resistance that the altcoin has faced since early January 2024. Such a breakout has garnered significant interest from traders and investors, reflected in a 160% increase in trading volume over the past day.
ADA Price Prediction
CoinPedia’s technical analysts are optimistic about ADA’s future, forecasting a potential 30% rise to reach the $1.26 mark. However, this bullish momentum hinges on the altcoin maintaining a daily candle close above the $0.98 threshold; failure to do so could dampen the prospects.
On a positive note, ADA’s Relative Strength Index (RSI) is currently at 52.65, comfortably below the overbought territory. This suggests that ADA has ample room to continue its upward trajectory, supporting the optimistic outlook for its short-term performance.
In conclusion, ADA’s recent price action and technical indicators provide a promising outlook for investors. While challenges remain, the current market dynamics and investor interest suggest ADA is well-positioned for continued growth.
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