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- Cardano could rise 15% to reach the $1.24 level if it closes a four-hour candle above the $1.07 level.
- ADA’s Spot Inflow/Outflow data showed that the exchanges experienced a significant outflow of $203.2 million.
After a week of trading sideways, Cardano [ADA]the original token of the Cardano blockchain, is now poised for an upward rally. During this consolidation, ADA formed a bullish pattern and has now broken out.
Other factors supporting ADA’s bullish outlook include strong trader and whale confidence in the token and a positive shift in market sentiment.
Cardano’s technical analysis and key levels
According to AMBCrypto’s analysis, ADA has broken out of a bullish inverse head-and-shoulders price action pattern.
If ADA successfully breaks a four-hour candle above the $1.07 level and closes, it could rise 15% to reach the $1.24 resistance level. Likewise, if this level is breached, ADA could gain another 25% and possibly reach $1.52 in the coming days.
Source: TradingView
On the plus side, ADA’s Relative Strength Index (RSI) suggested that the altcoin has plenty of room to rise. At the time of writing, the RSI was at 60, below overbought territory, which could potentially attract investors and traders alike.
Whale activity supports ADA price increase
In addition to technical analysis, traders and long-term holders (whales/investors) are actively participating in the altcoin, as reported by Coinglass.
Coinglass’ ADA Spot Inflow/Outflow data shows that exchanges have experienced significant outflows of $203.2 million since November 23, 2024.
In cryptocurrency, token outflows are considered a positive sign. This indicates that whales are taking tokens from their wallets.
Source: Coinglass
Rising open interest and bullish sentiment
In addition to the whale activity, traders have also shown strong participation. Coinglass data shows that ADA’s Open Interest (OI) is up 12.9% in the last 24 hours and 3.75% in the last four hours.
ADA’s growing OI, significant outflows and bullish price action indicate strong support from the bulls. This could push the price up significantly in the coming days.
Read Cardanos [ADA] Price forecast 2023-24
At the time of writing, ADA was trading around $1.07, with a price gain of over 6.45% in the past 24 hours.
However, trading volume fell by 30% over the same period. This indicates lower participation from traders and investors compared to the day before.