Cardano (ADA) is showing signs of continued upward momentum as it navigates through a crucial resistance level of $1.25. The native token of the Cardano blockchain has recently experienced significant gains, followed by a period of consolidation near this key level.
Technical analysis conducted by CoinPedia’s experts has identified a bullish flag and pole pattern on the four-hour chart. If ADA manages to break above the $1.25 resistance and close a four-hour candle above this level, it could potentially see a 30% surge towards the $1.63 mark in the coming days.
The Relative Strength Index (RSI) for ADA is currently at 54, indicating that the asset is not in the overbought zone yet. This suggests that there is still room for ADA to rally further in the near future. The RSI is a valuable tool for traders and investors to gauge the market sentiment and make informed decisions.
Furthermore, on-chain data from Coinglass reveals a significant outflow of $98.37 million worth of ADA from exchanges. This movement of funds from exchanges to personal wallets by whales, institutions, and retail investors signals strong interest in the altcoin. Historically, such outflows often precede upward price momentum and could present a buying opportunity for investors.
The combination of bullish technical indicators and on-chain metrics indicates that bulls are currently in control of ADA’s price action. This could potentially pave the way for ADA to break through the $1.25 resistance level in the near future.
As of the latest update, ADA is trading around $1.22 with a 1.5% price gain in the past 24 hours. However, trading volume has decreased by 20%, suggesting a lower level of participation from traders and investors compared to the previous day.
In conclusion, ADA’s technical outlook and on-chain data point towards a potential bullish trend in the short term. Traders and investors should keep a close eye on the $1.25 resistance level as a decisive break above this level could trigger a significant price surge towards $1.63.