Cardano (ADA) is set for a 30% rally, here’s why
ADA, the native token of the Cardano blockchain, is poised to continue its upward momentum as it has developed a strong price action pattern. After experiencing significant gains, ADA seems to be consolidating in a tight range near the strong resistance level of $1.25 and is struggling to break through this level.
Cardano (ADA) technical analysis and upcoming level
During this ongoing consolidation, CoinPedia's technical analyst found a higher flag and pivot price action in the four hours. Based on recent price action, if ADA breaks this pattern and closes the four-hour candle above the $1.25 level, it could rise by 30% to reach the $1.63 level in the coming days.
Currently, the asset's Relative Strength Index (RSI) stands at 54, which is below the oversold zone, indicating that ADA still has room to rally in the coming days. RSI is a technical indicator used to determine whether an asset is in an overbought or oversold zone to help traders and investors make informed decisions.
$98.4 million from ADA exchanges
According to technical analysis of this crash, investors and whales seem to be showing high interest in the altcoin, according to on-chain analysis firm CoinGlass. According to the inflow/outflow data from the ADA space, transactions showed an outflow of $98.37 million worth of ADA.
This significant flow of spending indicates that whales, institutions or retail investors have taken a significant amount of ADA from the exchange to their wallets. Historically, such movements in exchanges often signal an upside, provide a potential buying opportunity, and reduce the likelihood of a decline in prices.
Combining these on-chain metrics with technical analysis suggests that bulls are currently under control, which could support the ADA to breach the $1.25 resistance level.
Current price momentum
At press time, ADA is currently trading at around $1.22 and has recorded a 1.5% price increase in the last 24 hours. However, the trading volume decreased by 20 percent, indicating lower participation of traders and investors compared to the previous day.
