Cardano (ADA) Price Potential to Surge by 30%, with a Catch
ADA, the native token of the Cardano blockchain, is poised to break its silence after remaining in a downtrend for the past three weeks. The potential reasons behind this bullish outlook include the current market sentiment and the positive price action that ADA has displayed in recent days.
### ADA Technical Analysis and Upcoming Level
Since the beginning of December 2024, ADA has experienced a price decline of over 40%, falling below the $1 level. However, with notable attention from traders and investors, the altcoin’s price appears to be recovering and gaining upward momentum.
According to expert technical analysis, ADA appears to be consolidating within a tight range near a strong resistance level of $0.95. Based on recent price action and historical momentum, if ADA breaks out of the consolidation zone and closes a daily candle above the $1 mark, there is a strong possibility it could surge by 30% to reach the $1.25 level in the coming days.
Source: Trading View
Conversely, if the altcoin fails to close above this level and falls below the $0.85 mark, it may find support around the $0.72 level in the future.
On a positive note, ADA’s Relative Strength Index (RSI) currently stands near the oversold area, indicating potential upside momentum in the days ahead.
### On-Chain Metrics Support ADA’s Bullish Outlook
This bullish outlook appears to have attracted both long-term holders and traders, as reported by the on-chain analytics firm Coinglass. Data from ADA’s spot inflow/outflow reveals that exchanges have witnessed an outflow of a significant $98 million worth of ADA tokens in the past week.
Source: Coinglass
In addition to long-term holders, trader participation seems to have skyrocketed. According to the data, ADA’s open interest has surged by 8%, indicating heightened trader activity and suggesting potential upside momentum.
### Current Price Momentum
At press time, ADA is trading near $0.94 and has experienced a price surge of over 5.10% in the past 24 hours. During the same period, its trading volume jumped by 18% and continues to rise steadily, indicating heightened participation from traders and investors following the bullish outlook.
Tags: Crypto news, Price Analysis