ADA, the native token of the Cardano blockchain, is showing signs of continued upward momentum as it forms a bullish price action pattern. Despite facing strong resistance at $1.25, ADA is consolidating within a tight range and struggling to break through this level.
Technical analysis reveals a bullish flag and pole pattern on the four-hour chart, indicating a potential breakout if ADA closes above $1.25. If this level is breached, ADA could see a 30% increase to reach $1.63 in the near future.
The Relative Strength Index (RSI) currently stands at 54, below the overbought zone, suggesting that ADA still has room to rally. The RSI helps traders determine whether an asset is overbought or oversold, aiding in decision-making.
Recent data from on-chain analytics firm Coinglass shows a significant outflow of $98.4 million worth of ADA from exchanges. This movement of funds to wallets indicates strong interest from investors and whales, potentially signaling a bullish trend and reducing the likelihood of a price decline.
The combination of bullish technical analysis and on-chain metrics suggests that ADA is poised for further gains and could break through the $1.25 resistance level.
In terms of current price momentum, ADA is trading around $1.22 with a 1.5% gain in the past 24 hours. However, trading volume has decreased by 20%, indicating lower participation from traders compared to previous days.
Overall, ADA’s outlook remains positive as it continues to show strength in the face of resistance. Traders and investors should keep a close eye on key levels and indicators to capitalize on potential opportunities in the market.