ADA, the native token of the Cardano blockchain, is poised to break the silence after being in a downtrend for the past three weeks. The possible reasons behind this bullish outlook include current market sentiment and the positive price action that ADA has shown in recent days.
ADA Technical Analysis and Upcoming Level
Since the beginning of December 2024, ADA has experienced a price drop of over 40%, falling below the $1 level. However, with notable attention from traders and investors, the altcoin’s price seems 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 at $0.95. Based on recent price action and historical momentum, if ADA breaks out of the consolidation zone and closes a daily candle above $1, there is a strong possibility that it could rise 30% to reach the $1.25 level in the coming days.
Conversely, if the altcoin fails to close above this level and falls below $0.85, it could find support around the $0.72 level going forward.
On the plus side, ADA’s Relative Strength Index (RSI) is currently near oversold territory, indicating potential upside momentum in the coming days.
On-Chain metrics support ADA’s bullish outlook
This bullish outlook appears to have attracted long-term holders and traders alike, as reported by the on-chain analytics firm Mint glass. ADA spot inflow/outflow data shows that exchanges have witnessed an outflow of a significant $98 million worth of ADA tokens in the past week.
In addition to long-term holders, merchant participation appears to have skyrocketed. According to the data, ADA’s open interest is up 8%, indicating increased trading activity and suggesting potential upside momentum.
Current price momentum
At the time of writing, ADA is trading around $0.94 and has experienced a price increase of over 5.10% in the last 24 hours. During the same period, trading volume increased by 18% and continues to rise steadily, indicating greater participation from traders and investors following the bullish outlook.