The latest on-chain data shows that Cardano’s ADA tokens have seen a significant outflow of $150.89 million. This indicates growing confidence among investors. Despite the recent price decline of more than 30%, long-term investors are showing resilience during market corrections by taking the opportunity to accumulate ADA. Coinglass notes that ADA’s Long/Short Ratio is 1.04, highlighting a strong bullish sentiment among traders who are anticipating a potential price rally. This article takes a look at the $151 million outflow of Cardano’s ADA tokens, the bullish trading sentiment, and key technical indicators that point to a price recovery.
$151M ADA Outflow Shows Investor Confidence
According to data provided by Coinglass, long-term ADA holders are investing by taking advantage of recent price adjustments, signaling stability in the cryptocurrency market. This outflow of $ 150.89 million is interpreted as investors starting to withdraw their funds from exchanges, which generally indicates confidence in the price increase.
Many crypto communities see this move as a positive indicator. It is stated that long-term ADA investors are not affected by short-term fluctuations and continue to accumulate. Such movements can pave the way for future price increases. However, similar strategies may have been followed for potentially larger declines. Managing short-term risks stands out as an important factor.
These breakouts indicate not only changes in sentiment but also potential bullish movements, creating a good time for strategic investments. At the same time, the Long/Short Ratio reaching 1.04 shows that the majority of traders are taking long positions, reflecting bullish expectations.
Cardano’s Technical Analysis and Critical Levels
This optimism is supported by ADA’s strong performance after testing the critical support level at $0.80, which sent ADA rallying to $0.97 despite the turbulent market conditions.
ADA price is showing strong recovery signals and bullish momentum seems to be building. Bullish hammer candles forming at the support level indicate increasing buyer interest. A sustained position above the $0.95 level and daily closes above $1 could see the price rise 25% to $1.24.
Currently, ADA’s trading activity is notable for its trading volume, which has increased by more than 30% in recent hours. The digital asset’s price action is developing in line with major cryptocurrencies, with bullish patterns increasing trader participation, allowing ADA to gain more value.
