ADA price forecast for January 16
Following the Securities and Exchange Commission's (SEC) plan to review and close all pending cases, the entire cryptocurrency market is seeing a boom. This update changed the overall market sentiment, and significant price increases were seen across all major cryptocurrencies.
Crypto Wales bought 100 million ADA tokens
In the midst of this pessimistic attitude, ADA, native to the Cardano blockchain, is gaining widespread attention from crypto enthusiasts due to its accumulation of whales. Today, January 15, 2025, a prominent crypto expert on X (formerly Twitter) claims that crypto whales have accumulated 100 million ADA tokens in the last 48 hours.
However, this massive stockpile, the SEC's recent plan to exempt crypto entities not involved in any fraud, and Trump's inauguration are responsible for the ADA rally today.
Current price momentum
According to CoinMarketCap, today, ADA has seen a price rally of more than 7.5% in the last 24 hours and is currently trading at the level of $1.065. This sharp increase in prices and the recent changes caught the attention of traders, resulting in a 76 percent jump in trading volume.
Meanwhile, traders and investors should be aware of the critical levels and also understand the levels that ADA may reach in the future.
ADA price action and key standards
According to the daily chart of the altcoin, with the dramatic price increase, ADA has reached the critical trend line resistance level where the previous price reversal was observed. Some are expecting a similar price reversal, but given the current market sentiment, there's a good chance it won't happen.
ADA price forecast
Additionally, since December 2024, market sentiment has become uncertain, and during this period, ADA has formed a bullish inverted head and shoulders price action pattern. Now it is standing near the neck, which seems to be the level of resistance.
Based on the recent price action, if the ADA breaks the trend line and the daily candle closes above the horizontal level of $1.15, there is a high probability of a 40% upside to the $1.645 level in the future.
On the positive side, the ADA Relative Strength Index (RSI) is still below the overbought level, indicating that the asset still has room to witness a massive upside move.
