The recent election results have changed overall market sentiment. Amid this, Cardano (ADA) has seen a remarkable rally along with other major cryptocurrencies and gained significant attention from crypto enthusiasts.
Meanwhile, the altcoin has gained more than 272% in upside momentum over the past 30 days.
Outflows of $231 million, a bullish sign?
Despite significant upside momentum, on-chain metrics indicate that ADA is likely to continue this rally in the coming days. According to the on-chain analytics company MintGlassSince November 23, 2024, ADA’s spot inflows/outflows data shows that the exchanges have seen significant outflows of $231 million.
The outflow is a term that defines the amount of assets that are moved out of the stock markets. In the context of cryptocurrency, outflows often lead to price increases, reduce the likelihood of selling pressure and attract investors and traders.
Current price momentum
Currently trading around the $1.20 level, ADA has experienced a modest 2% price decline over the past 24 hours. However, during the Asian trading session, ADA hit a two-year high of $1,326.
Additionally, trading volume rose 8.5% over the same period, indicating a modest increase in trader participation amid ADA’s bullish outlook.
Cardano (ADA) Technical analysis and upcoming level
Despite these developments, experts suggest that ADA is currently facing strong resistance around $1.25 and appears to be struggling to break this level. Based on recent price action, if the altcoin breaks a daily candle and closes above the $1.30 level, it could see significant upside momentum of 32% in the coming days.
Historically, when ADA price reaches or breaks a resistance level, it tends to consolidate before a notable upward rally occurs on the chart. Currently, increased interest in whales and confidence in the token suggest potential signs of bullish momentum or a buying opportunity.
Geopolitical uncertainty
However, today, December 3, 2024, sentiment appears to be shifting downward as South Korean President Yoon Suk Yeol has declared a martial law emergency. This major development has led to a notable asset sell-off in recent hours. If this decline is not contained, ADA’s bullish thesis is in danger of failing.