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ADA, the native token of the Cardano blockchain, appears to be creating confusion among traders and investors due to ongoing market uncertainty and recent price fluctuations. Despite this uncertainty, ADA has successfully retested its bullish breakout and is poised for massive upside momentum.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA has retested its bullish flag and pole price action pattern on the daily time frame and appears to be moving in an upward direction. Based on recent price momentum and historical patterns, if the asset holds above the $0.80 level, there is a strong possibility it could initially soar by 40% to reach the $1.25 level in the coming days.
Despite a notable price drop and bearish market sentiment, ADA has held itself above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating that it remains in an uptrend. Meanwhile, the asset’s Relative Strength Index (RSI) is above 50, suggesting that ADA still has the strength to rally.
Current Price Momentum
ADA is currently trading near the $0.87 level and has witnessed an 8% price drop in the past 24 hours. However, the price is now recovering. Due to market uncertainty, its trading volume has dropped by 16%, indicating lower participation from traders and investors compared to the previous day.
Bullish On-Chain Metrics
With this strong bullish price action, investors and long-term holders have been accumulating tokens, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of $43 million worth of ADA tokens, indicating potential accumulation, which could lead to buying pressure and an upside rally.
At press time, the major liquidation areas are near $0.84 on the lower side and $0.89 on the upper side, with traders over-leveraged at these levels. They have built $17 million worth of positions on the long side and $10 million worth of positions on the short side, clearly indicating that bulls are dominating the asset.
