ADA, the native token of the Cardano blockchain, is showing signs of a potential bullish breakout after a prolonged downtrend in recent weeks. The reasons behind this optimistic outlook include the current market sentiment and the positive price action that ADA has demonstrated in the past few days.
ADA Technical Analysis and Upcoming level
Since the start of December 2024, ADA has seen a significant price decline of more than 40%, dropping below the $1 level. However, there has been a renewed interest from traders and investors, leading to a potential recovery and upward momentum in the altcoin’s price.
Expert technical analysis suggests that ADA is currently consolidating near a strong resistance level of $0.95. If ADA manages to break out of this consolidation zone and close above the $1 mark, there is a high likelihood of a 30% surge towards the $1.25 level in the near future. On the other hand, if ADA fails to sustain above $0.85 and drops below $0.72, it may find support at the latter level.
The Relative Strength Index (RSI) for ADA is currently hovering near oversold territory, indicating a possible upside momentum in the days to come.
On-Chain Metrics Support ADA’s Bullish Outlook
On-chain metrics from Coinglass show that there has been a significant outflow of $98 million worth of ADA tokens from exchanges in the past week. This suggests a strong interest from long-term holders and traders in ADA, indicating a positive sentiment towards the altcoin.
Additionally, trader participation has increased significantly, with ADA’s open interest rising by 8%. This surge in trader activity hints at a potential uptrend for ADA in the near future.
Current Price Momentum
As of the latest update, ADA is trading around $0.94, marking a 5.10% increase in the past 24 hours. The trading volume has also surged by 18%, indicating growing participation from both traders and investors who are closely monitoring ADA’s bullish potential.
In conclusion, ADA’s recent price action, technical analysis, and on-chain metrics all point towards a potential bullish breakout in the coming days. Traders and investors are advised to keep a close eye on ADA’s price movements as it navigates through key resistance levels towards a possible uptrend.