Is it time to buy Cardano? $230M ADA Exit Signal Bullish Rally
The recent election results have changed the overall market sentiment. In the meantime, Cardano (ADA) has experienced a popular rally with other major cryptocurrencies and has received a lot of attention from crypto enthusiasts.
Meanwhile, the altcoin has surged more than 272% in the last 30 days.
$231 million in outflows, a sign of cruelty?
Despite the significant movement, on-chain metrics suggest that ADA may take this rally in the coming days. According to on-chain analytics firm CoinGlass, as of November 23, 2024, ADA spot inflow/outflow data shows that transactions have seen a record high of $231 million.
An exit is a term that describes the amount of assets leaving an exchange. In the context of cryptocurrency, outflows often result in price rallies, reducing selling pressure, attracting investors and traders.
Current price momentum
ADA is currently trading at $1.20 and has experienced a modest 2% drop in price over the past 24 hours. However, during Asian trading, ADA reached a two-year high of $1.326.
Additionally, trading volume rose by 8.5 percent during the same period, indicating a modest increase in merchant participation in ADA's bullish attitude.
Cardano (ADA) technical analysis and upcoming level
Despite these developments, experts suggest that ADA is currently facing strong resistance near $1.25 and seems to be struggling to break this level. Based on recent price action, if the altcoin breaks and closes a daily candle above the $1.30 level, it could see a significant 32% bounce in the coming days.
Historically, when the ADA price reaches or breaks a resistance level, it tends to consolidate before a significant reversal rally occurs on the chart. The current surge in whale interest and confidence in the token suggests signs of bullish sentiment or a buying opportunity.
Geopolitical instability
However, today, December 3, 2024, the mood seems to be turning sour as South Korean President Yun Suk-yeol declares a state of emergency martial law. This significant development has resulted in significant asset selling in the last few hours. If this failure is not caught, the ADA bullish thesis risks failing.
