For some investors, Cardano's recent drop below 1 USD may seem catastrophic. However, ADA bulls appear to be unconcerned about the slight decline, as on-chain data suggests they may be preparing for another round of sustained increases.
The following is an in-depth analysis of the future trends of altcoins.
Cardano investors maintain a bullish belief.
As of the writing of this article, Cardano's price was 0.98 USD, having previously risen to 1.15 USD. This slight decline may be related to the broader market drop yesterday when Bitcoin (BTC) fell below 95,000 USD.
However, Coinglass data shows that as of the writing of this article, ADA's spot inflow/outflow was -40 million USD, down from -63 million USD on Monday, November 25. This indicates that Cardano bulls have withdrawn approximately 100 million USD from exchanges in just two days.
Typically, when holders withdraw tokens from exchanges, it indicates they do not intend to sell, which may create upward price pressure. Conversely, an increase in inflows suggests that holders are willing to sell, which may lead to a price drop.
Therefore, if the outflow continues to increase, Cardano's price may rebound in the short term. Another indicator predicting this trend is the average dollar investment age (MDIA).
MDIA is the average age of all tokens on the blockchain, weighted by the average purchase price. When it increases, it means that most tokens are stagnant. Therefore, the price is unlikely to fluctuate significantly.
However, for Cardano, the 90-day MDIA has significantly decreased, indicating an increase in trading activity of previously inactive tokens. If this continues, as long as buying pressure increases, ADA may rise relatively easily.
ADA Price Prediction: Upward Trend Will Continue
The 4-hour ADA chart shows a bullish flag forming, which is a bullish pattern composed of two rebounds with a brief consolidation period in between.
This pattern begins with a sharp price increase, known as the flagpole pattern, driven by strong buying pressure. The price then retraces, forming a flag - a rectangle with parallel trend lines. Bullish flags typically indicate that after consolidation, once the pattern breaks out, the price is likely to resume an upward trend.
Given the current outlook, Cardano bulls may push the price above 1.15 USD. If this happens, ADA could rebound to the 2 USD mark. On the other hand, if selling pressure increases, the price may drop to 0.85 USD.
