Analysis of Cardano Price Movement: ADA Breaks Above $0.97, Setting Sights on Next Price Target
Over the past 24 hours, Cardano (ADA) has attracted considerable attention from the cryptocurrency community due to its impressive price recovery. This surge in ADA’s value comes amidst similar rebounds observed in other major cryptocurrencies that recently faced significant declines.
Strong Confidence Shown Through $151 Million ADA Outflow
Despite ADA’s price decline of more than 30% in recent days, data provided by the on-chain analytics firm Coinglass indicates that long-term holders are actively accumulating tokens during this period of reduced prices.
The Spot Inflow/Outflow data for ADA highlights a significant outflow of $150.89 million from various cryptocurrency exchanges, suggesting growing confidence among investors.
These on-chain metrics serve as a valuable tool for understanding token movements away from exchanges, potentially signaling an upcoming positive price trend and an attractive entry point for new investors.
In addition to the optimism shown by long-term holders, traders are also demonstrating increased interest, as indicated by Coinglass’s Long/Short Ratio. The current ratio for ADA stands at 1.04, representing the highest level since mid-November 2024.
A ratio above one signals a prevailing bullish sentiment among traders.
Technical Analysis and Key Levels for Cardano
The recent surge in interest from both long-term holders and traders follows ADA’s successful retest of a crucial support level at $0.80.
According to CryptoCrypto’s technical analysis, ADA effectively retested a key breakout level during its recent price correction, a level it had not revisited previously.
Subsequently, the price managed to climb back above the important level of $0.97.
Furthermore, a bullish hammer candle formation at the support level suggests a positive outlook for ADA investors.
Based on recent price movements, if ADA can maintain levels above $0.95 and close a daily candle above $1, there is potential for a 25% surge, pushing the price towards $1.24 in the near term.
As of the latest update, ADA was trading around $0.99, with a notable uptick of over 12% in the past day. The trading volume also saw a 30% increase during the same period, indicating heightened engagement from traders and investors amid an optimistic market sentiment.