ADA, the native token of the Cardano blockchain, has been on a downtrend for the past three weeks, but it seems poised for a bullish reversal. The positive price action and market sentiment are the main factors behind this optimistic outlook. Despite experiencing a significant price decline of over 40% since December, ADA has been gaining upward momentum, attracting attention from traders and investors.
Expert technical analysis suggests that ADA is consolidating near a strong resistance level of $0.95. If the altcoin manages to break out of this consolidation zone and close above the $1 mark, it could potentially surge by 30% to reach $1.25 in the near future. On the other hand, if ADA fails to close above $0.95 and falls below $0.85, it may find support around $0.72 in the coming days. The Relative Strength Index (RSI) also indicates potential upside momentum for ADA in the days ahead.
On-chain metrics further support ADA’s bullish outlook, as evidenced by a significant outflow of $98 million worth of ADA tokens from exchanges in the past week. Both long-term holders and traders seem to be attracted to the bullish momentum, with ADA’s open interest surging by 8%. This increase in trader activity suggests a potential upside momentum for ADA in the near future.
As of now, ADA is trading near $0.94 and has seen a price surge of over 5.10% in the past 24 hours. The trading volume has also increased by 18%, indicating heightened participation from traders and investors following the positive price action and market sentiment surrounding ADA. With the potential for ADA to break above the $1 level and reach $1.25, it seems like the altcoin is on track for a bullish reversal after its recent downtrend.
