Cardano (ADA) Price Analysis and Market Outlook
As of December 22, 2024, the cryptocurrency market as a whole is facing some challenges, with Cardano (ADA) showing signs of a potential price decline after forming a bearish pattern. Despite this overall bearish sentiment, traders and investors are showing caution when it comes to participating in this particular altcoin, according to data from Coinglass, an on-chain analytics firm.
Looking at recent on-chain metrics and combining them with technical analysis, the outlook for Cardano (ADA) appears mixed. While long-term holders seem optimistic, as evidenced by significant outflows from exchanges, technical patterns suggest the possibility of short-term bearish trends.
Cardano (ADA) Technical Analysis and Upcoming Level
According to CoinPedia’s technical analysis, ADA is currently in a bearish phase after breaking down from a head-and-shoulders pattern and subsequently retesting that level. The retest of the breakdown level has partially confirmed the potential for a price decline in ADA.
Based on this technical analysis, there is a strong likelihood that ADA could experience a 15% drop, reaching the next support level at $0.80. If the current sentiment persists, ADA may indeed reach the projected target.
Optimistic On-Chain Metrics
Despite the bearish technical outlook, long-term holders of ADA seem positive about the coin, as indicated by Coinglass. Data on ADA spot inflow/outflow shows a significant outflow of $200 million worth of ADA from exchanges in the past week, with no inflow during this period despite the price decline.
This trend reflects the movement of assets from long-term holders’ wallets to off exchanges, suggesting a bullish sentiment and accumulation of tokens amidst the price downturn. This indicates a potential upward momentum and a favorable buying opportunity.
Current Price Momentum
Currently, ADA is trading around $0.89, with a price decline of over 5.5% in the last 24 hours. During the same period, trading volume has decreased by 45%, indicating reduced engagement from traders and investors amid the ongoing price correction.