Cardano (ADA) price may rise 30%, but there is a catch.
ADA, which is native to the Cardano blockchain, is set to break its silence after being in a deep slump for the past three weeks. Possible reasons behind this bullish outlook include the current market sentiment and the positive price action that ADA has shown in recent days.
ADA technical analysis and future status
Since early December 2024, ADA has experienced a more than 40% drop in value, falling below the $1 level. However, with the attention from traders and investors, the altcoin price seems to be recovering and moving higher.
According to expert technical analysis, ADA seems to be consolidating in a tight range near the strong resistance level of $0.95. Based on recent price action and historical progress, if ADA breaks out of the consolidation zone and closes the daily candle above the $1 mark, there is a strong possibility that it could rise by 30% to reach the $1.25 level in the coming days.
Conversely, if the altcoin fails to close above this level and falls below the $0.85 mark, it may find support around the $0.72 level in the future.
On a positive note, ADA's Relative Strength Index (RSI) is currently standing near the oversold area, indicating higher momentum in the coming days.
Metrics on the chain support ADA's Bullish Outlook
This bullish attitude seems to have attracted both long-term owners and traders, according to chain analysis firm Coinbase. According to ADA space inflow/outflow data, exchanges have taken a whopping $98 million worth of ADA tokens in the past week.
In addition to long-term holders, the participation of traders appears to be high. According to the data, ADA's open interest rose by 8%, indicating higher trading activity and upside potential.
Current price momentum
At press time, ADA is trading at around $0.94 and has experienced a price increase of over 5.10% in the last 24 hours. During the same period, the transaction volume increased by 18 percent and continues to grow steadily, reflecting the high participation from traders and investors.
