Emergency alert! Cardano (ADA) Price Set For 30% Rally
After a two-week extended period of narrow consolidation, ADA, the native token of the Cardano blockchain, is poised for a notable upward move due to a strong price action pattern. However, beginning in December 2024, the ADA experienced a significant price adjustment. It has consistently faced resistance from the trend line and has seen a price decline of over 42%.
Will the ADA's recent rally continue?
At the same time, long-term holders and whales seem to be hoarding the altcoin heavily, as it appears to be in a discount phase, according to blockchain analytics company Coinglass.
This is in line with recent trends, where traders have been closely monitoring key ADA levels, especially following a correction, to assess potential buying opportunities.
Looking at what long holders have done over the past seven days, data from ADA spot inflows/outflows shows that exchanges saw a record ADA outflow of $37.18 million. This measure indicates that long-term holders have accumulated these significant tokens during the price consolidation.
Apart from this, the sentiment seems to be turning bullish at the moment, and ADA has seen a price increase of over 15% in the last 48 hours.
Cardano (ADA) technical analysis and current price momentum
At press time, ADA is trading around $0.96 and has experienced a price rally of over 8.5% in the last 24 hours. This price increase has resulted in a long-term consolidation and trend reversal that the altcoin has experienced since early January 2024.
Inflation and price hikes attracted heavy participation from traders and investors, leading to a 160 percent increase in trading volume in the last 24 hours.
ADA price forecast
Following all these moves and price performances, CoinPedia's technical analyst suggests that ADA is bullish and could rise by 30% to the $1.26 mark in the future. However, this bullish outlook will only hold if the altcoin closes the daily candle above the $0.98 mark, otherwise it may fail.
On the positive side, the ADA Relative Strength Index (RSI) currently stands at 52.65, which is below the overbought area. This indicates that the asset has enough room to continue its reversal rate.
