Cardano’s cryptocurrency, ADA, is poised for a substantial increase in its available supply during the current week. This unlocking event is anticipated to have a significant influence on ADA’s market value, given its current position at a critical level.
Unlocking $43.5 Million Worth of ADA
Recent data indicates that approximately 37.06 million ADA tokens, valued at $43.36 million and representing about 0.10% of the total circulating supply, will become accessible between December 9 and December 16. This substantial influx of tokens into circulation could potentially instigate a price adjustment or decrease in the foreseeable future.
Moreover, other digital assets amounting to over $1.347 billion, such as Solana and Dogecoin, are also scheduled for unlocking within the same timeframe.
Technical Analysis of Cardano and Future Levels
According to technical analysis by CryptoCrypto, ADA is currently in a consolidation phase near the resistance level of $1.25. For over a week now, the altcoin has been consolidating between $1.12 and $1.24.
Industry experts suggest that a breakout or breakdown from this consolidation range will dictate ADA’s trajectory in the upcoming days.
December 2024 Price Forecast for ADA
Based on recent price movements, in the event that ADA breaches the upper limit of the consolidation range and closes a daily candle above $1.25, there is a strong likelihood of a 50% surge to reach $1.90.
Conversely, a break below the lower boundary of the consolidation zone and a daily candle closure under $1.12 might lead to a 20% decline with a target of $0.92 in the immediate future.
Considering the present market sentiment and investor excitement, it seems probable that ADA will experience a breakout and successfully close above the $1.25 threshold.
Furthermore, ADA’s Relative Strength Index (RSI) is currently at 64, indicating that the altcoin’s price remains below the overbought territory. This suggests the potential for further upward movement.
Escalation of Exchange Outflows
The optimistic outlook is reinforced by the increased interest and confidence in ADA from institutional investors and large holders, as highlighted by the on-chain analytics provider Coinglass.
Data reflecting ADA’s movement in and out of exchanges shows a substantial outflow of $129 million since the start of December.
In the cryptocurrency realm, “outflow” signifies the transfer of assets from exchanges to personal wallet addresses. This notable outflow indicates a probable upward rally and signifies auspicious buying possibilities.
Currently, ADA is trading near $1.15 and has experienced a 4.10% price decline in the last 24 hours. However, trading volume has increased by 15% during the same period, signifying a heightened level of engagement from traders and investors in comparison to preceding days.