After a prolonged two-week period of narrow consolidation, ADA, the native token of the Cardano blockchain, is on the cusp of notable upward momentum. This anticipation stems from a bullish price action pattern that is currently unfolding. However, since the onset of December 2024, ADA has undergone a substantial price correction. The token has persistently encountered resistance from a trendline, resulting in a price decline exceeding 42%.
Will ADA’s Recent Rally Continue?
During this period, long-term holders and significant investors, often referred to as whales, have been actively accumulating ADA. This appears to be a strategic move, as the altcoin is perceived to be undervalued at its current levels, according to insights from the on-chain analytics firm Coinglass. This aligns with prevailing trends where traders are closely monitoring ADA’s critical levels, especially in the wake of its correction, to identify potential buying opportunities.
Examining the behavior of long-term holders over the past week, data from ADA’s spot inflow/outflow reveals a noteworthy outflow of $37.18 million worth of ADA from exchanges. This metric underscores that long-term holders have been accumulating substantial amounts of the token during this consolidation phase.
The overall market sentiment is gradually shifting towards an uptrend. ADA has experienced a remarkable price increase of over 15% in the past 48 hours, signaling a possible continuation of the rally.
Cardano (ADA) Technical Analysis and Current Price Momentum
At the time of writing, ADA is trading near the $0.96 mark, having achieved a price rally of over 8.5% in the last 24 hours. This upward momentum has resulted in a breakout from the extended consolidation and trendline resistance that the altcoin has faced since early January 2024.
The breakout and significant price surge have captured the interest of traders and investors alike, culminating in a 160% increase in trading volume over the past 24 hours.
ADA Price Prediction
Following these developments and price movements, CoinPedia’s technical analyst is optimistic, suggesting that ADA is in a bullish phase and could potentially rise by 30%, aiming for the $1.26 mark in the foreseeable future. However, this bullish trajectory is contingent upon the altcoin closing its daily candle above the $0.98 threshold; failing to do so could invalidate this outlook.
On a positive note, ADA’s Relative Strength Index (RSI) is currently at 52.65, which is below the overbought territory. This indicates that the asset has ample room to sustain its upward momentum, making it a promising prospect for investors looking to capitalize on its potential growth.
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