After a lengthy two-week phase of limited price movement, ADA, the native cryptocurrency of the Cardano blockchain, is gearing up for a potential upward trajectory. This optimism stems from a bullish price action pattern that has emerged recently. Despite this positive outlook, ADA has faced challenges since early December 2024, undergoing a substantial price correction. The token has persistently encountered resistance from a trendline, leading to a notable price dip exceeding 42%.
Will ADA’s Recent Rally Continue?
During this period, it appears that long-term investors and significant holders, often referred to as whales, have been accumulating ADA, viewing it as undervalued. This insight is backed by data from Coinglass, an on-chain analytics firm, which highlights this accumulation trend. Traders have been closely watching ADA’s critical levels, especially after its correction, to identify potential buying opportunities.
In a detailed analysis of long-term holders’ activity over the past week, data indicates a substantial outflow of ADA from exchanges, amounting to $37.18 million. This metric reinforces the notion that long-term holders are seizing the opportunity to acquire more tokens during this consolidation phase.
Beyond these developments, market sentiment is showing signs of a bullish shift, with ADA experiencing a price surge of over 15% in the last 48 hours.
Cardano (ADA) Technical Analysis and Current Price Momentum
As of now, ADA is trading at approximately $0.96, marking an impressive price rally of over 8.5% in the last 24 hours. This upward movement has resulted in a breakthrough from the prolonged consolidation and trendline resistance that ADA has been grappling with since the start of January 2024.
This breakout has captured the attention of traders and investors alike, leading to a remarkable 160% increase in trading volume over the past day, highlighting the renewed interest in ADA.
ADA Price Prediction
Considering the recent price actions and market dynamics, CoinPedia’s technical analysts project a bullish future for ADA, estimating a possible 30% increase that could propel the token to $1.26. However, this optimistic forecast hinges on the condition that ADA must close its daily candle above $0.98. Failing to do so could jeopardize this positive momentum.
On a brighter note, ADA’s Relative Strength Index (RSI) is presently at 52.65, suggesting that the asset has not yet entered the overbought territory. This indicates that there is sufficient room for ADA to continue its upward momentum.
In conclusion, while ADA has faced significant challenges in recent months, the current technical indicators and market sentiment suggest a potential for recovery and growth. Investors and traders should monitor key resistance levels and market trends closely to make informed decisions.
