ADA, the native token of the Cardano blockchain, is about to break its silence after maintaining a downward trend for the past three weeks. The underlying reasons behind this bullish outlook include the current market sentiment and the positive price action that ADA has shown in recent days.
Technical Analysis of ADA and Upcoming Levels
Since the beginning of December 2024, ADA has experienced a price drop of over 40%, falling below the $1 mark. However, with significant attention from traders and investors, the price of this altcoin seems to be recovering and gaining momentum.
According to technical analysis by experts, ADA appears to be consolidating in a narrow range near a strong resistance level of $0.95. Based on recent price action and historical momentum, if ADA breaks out of the consolidation area and closes a daily candle above $1, there is a high likelihood it could surge 30% to reach $1.25 in the coming days.
On the contrary, if the altcoin fails to close above this level and falls below $0.85, it may find support at $0.72 in the future. On the positive side, ADA's Relative Strength Index (RSI) is currently near the oversold region, suggesting potential upward momentum in the coming days.
On-Chain Metrics Support ADA's Bullish Outlook
This bullish outlook seems to have attracted both long-term holders and traders, according to a report from the blockchain analytics firm Coinglass. Data from ADA's inflow/outflow shows that exchanges have witnessed an outflow of $98 million worth of ADA in the past week.
In addition to long-term holders, the participation of traders seems to have surged. According to data, ADA's open interest has increased by 8%, indicating heightened trading activity and suggesting potential bullish momentum.
Current Price Momentum
At the time of reporting, ADA is trading near $0.94 and has increased over 5.10% in the last 24 hours. During the same period, its trading volume has risen by 18% and continues to increase steadily, indicating growing participation from traders and investors following the bullish outlook.
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