Cardano [ADA] has grabbed the attention of cryptocurrency enthusiasts with its impressive price recovery in the last 24 hours. Similar recoveries have been observed in other major cryptocurrencies that recently faced significant declines.
Upward Trend Signaled by $151M ADA Outflow
Despite a steady decline of more than 30% over the past few days, data from Coinglass, an on-chain analytics firm, indicates that long-term ADA holders are accumulating tokens during the price drop. Exchanges have seen a substantial outflow of $150.89 million worth of ADA.
These on-chain metrics provide insights into withdrawn tokens from exchanges, suggesting a potential upward trend and a favorable buying opportunity. Alongside long-term holders, traders are also showing increased interest, as seen in Coinglass’s Long/Short Ratio, which currently stands at 1.04, the highest since mid-November 2024.
A Long/Short Ratio above one reflects strong bullish sentiment among traders.
Analysis of Cardano’s Technicals and Key Levels
The growing interest from long-term holders and traders comes after ADA successfully retested a solid support level at $0.80. According to CryptoCrypto’s technical analysis, ADA revisited its previous breakout level during the recent decline, a level left untouched before.
The price then bounced back above the critical support level of $0.97. Furthermore, a bullish hammer candle formation at the support level signals a positive outlook for ADA holders.
Based on recent price movements, if ADA can maintain levels above $0.95 and close a daily candle over $1, it may see a potential 25% surge to reach $1.24 in the near term.
Currently, ADA is trading around $0.99, marking a 12% upside in the last 24 hours. The trading volume has also increased by 30% during the same period, indicating rising participation from traders and investors amid an optimistic market sentiment.