The native token of the Cardano blockchain, ADA, is demonstrating promising upward momentum, thanks to the formation of a bullish price pattern on the daily chart. On December 11, 2024, ADA experienced a robust surge of more than 8%, rebounding from the previous day’s substantial decline of over 23%. This swift recovery is drawing the attention of investors and market watchers alike.
Growing Interest from Whales in ADA
The recent positive price movements can be attributed to the growing interest and confidence of investors and long-term holders in Cardano’s potential. Whales, along with long-term holders, are actively placing their bets on an upward rally. According to insights from on-chain analytics firm Coinglass, these major market players are increasingly optimistic about ADA’s future performance.
Significant ADA Outflow from Exchanges: $186 Million
Analyzing ADA’s spot inflow and outflow data reveals that exchanges have recorded a substantial outflow of $185.89 million worth of ADA since December 2024 began. In the context of cryptocurrency, outflow signifies the movement of assets from exchanges to individual wallet addresses, often indicating acquisition activities. This trend not only highlights potential upward momentum but also suggests an attractive buying opportunity for investors looking to capitalize on ADA’s future growth.
Technical Analysis and Future Projections for Cardano (ADA)
The steadfast support from whales and long-term holders has been instrumental in preventing ADA from falling below its critical support level of $1.00. Expert technical analysis suggests that ADA is currently in a bullish phase, having successfully retraced and now poised to move upward. Based on recent price actions, there’s a strong likelihood that ADA could ascend by 15%, potentially reaching the $1.25 mark in the near future.
Moreover, ADA’s Relative Strength Index (RSI) is presently at 58, which is comfortably below the overbought threshold, indicating ample room for further rallies in the coming days.
Understanding the Current Price Momentum
As of the latest update, ADA is trading close to $1.08, reflecting a price gain of over 7.10% within the last 24 hours. However, during this period, its trading volume has seen a decline of 28%, suggesting reduced participation from traders and investors compared to previous days. This dynamic could shift as market conditions continue to evolve and more investors take notice of ADA’s potential.
