As we dive into the dynamic world of cryptocurrencies, a significant focus rests on Cardano (ADA) and its native token. The token has exhibited a promising price action pattern on the daily chart, suggesting potential upward momentum. On December 11, 2024, ADA impressively bounced back by over 8%, recuperating from a steep decline of more than 23% just a day prior.
Whales’ Rising Interest in ADA
The recent surge in ADA’s price can be attributed to growing interest and confidence among investors, particularly long-term holders. These stakeholders, often referred to as ‘whales’ due to their substantial holdings, appear to be banking on the prospect of a bullish rally. According to insights from the on-chain analytics firm Coinglass, this renewed interest is a driving force behind ADA’s current momentum.
$186 Million of ADA Outflow From Exchanges
Analysis of ADA’s spot inflow and outflow data reveals that exchanges have encountered a remarkable outflow of approximately $185.89 million worth of ADA since the dawn of December 2024. In the realm of cryptocurrency, an outflow signifies the transfer of assets from exchanges to individual wallet addresses, which often signals potential acquisition activity. This shift not only suggests possible upward momentum but also indicates a favorable buying opportunity for investors eager to capitalize on ADA’s trajectory.
Cardano (ADA) Technical Analysis and Upcoming Levels
The steadfast support from whales and long-term holders has played a crucial role in keeping ADA above its vital support threshold of $1.00. Technical analyses conducted by experts underscore the altcoin’s bullish tendencies, as it has effectively retraced and is now on an upward path. Based on recent price movements, there is a strong likelihood that ADA could rally by an additional 15%, potentially reaching the $1.25 mark in the near future.
Furthermore, ADA’s Relative Strength Index (RSI) is currently positioned at 58. This figure, being below the overbought territory, suggests that ADA possesses ample room to rally further in the coming days.
Current Price Momentum
As of the latest update, ADA is trading near $1.08, with a notable price gain of over 7.10% in the past 24 hours. However, during this period, its trading volume has dropped by 28%, indicating a decrease in trader and investor participation compared to previous days. This shift in trading dynamics could potentially influence ADA’s short-term price movements, offering a speculative yet intriguing scenario for market watchers.
