ADA, the native token of the Cardano blockchain, is showing promising signs of upward momentum, having formed a bullish pattern on its daily chart. On December 11, 2024, ADA experienced a remarkable surge, climbing over 8% following a significant decline of more than 23% the previous day.
Increased Interest from Whales in ADA
This dramatic price movement may be attributed to amplified investor confidence, particularly among long-term holders and larger investors, commonly referred to as whales. According to Coinglass, a prominent on-chain analytics firm, these entities are maintaining their optimism about Cardano’s potential for a price rally.
Significant ADA Outflow from Exchanges
Recent data on ADA spot inflows and outflows highlights a noteworthy trend: since the start of December 2024, exchanges have seen an outflow of approximately $185.89 million worth of ADA. In the cryptocurrency world, such outflows usually signify the transfer of assets from exchanges to personal wallets, often pointing to anticipated acquisitions. This movement not only signals potential upward momentum but also suggests a potentially favorable buying opportunity.
Technical Analysis and Future Levels for Cardano (ADA)
The steadfast support from whales and those holding ADA for the long term has played a crucial role in preventing the altcoin from falling below its key support level of $1.00. Technical analysts suggest that ADA is exhibiting bullish tendencies as it has successfully recovered and is on an upward trajectory. Given the latest price movements, ADA could potentially increase by 15%, reaching the $1.25 mark in the near future.
Complementing this positive outlook, ADA’s Relative Strength Index (RSI) currently stands at 58, which remains below the overbought threshold. This indicates that ADA has ample room to continue its upward momentum in the days ahead.
Current Price Momentum
As of the latest update, ADA is trading around the $1.08 level, having recorded a price gain of more than 7.10% in the last 24 hours. However, during the same time frame, its trading volume has decreased by 28%, suggesting a reduction in trading activity compared to previous days.
The recent developments in ADA’s price action, coupled with the strategic movements of key investors, position Cardano as a cryptocurrency to watch closely. As market dynamics continue to evolve, ADA’s potential for growth could offer substantial opportunities for investors and traders alike.
