ADA, the native token of the Cardano blockchain, has been stuck in a prolonged consolidation phase for weeks now. The asset has been trading within a narrow range of $0.69 to $0.75, with several fakeouts confusing traders and investors who are trying to predict its next move. Expert technical analysis indicates that ADA is currently neutral and hovering near the upper boundary of the consolidation range.
If ADA manages to break above the $0.76 level and close a daily candle above it, there is a strong possibility that the asset could rally by 13% to reach $0.85 in the near future. However, the current rally is being capped by the $0.75 resistance level and the 200 Exponential Moving Average (EMA) on the daily timeframe, which have been acting as strong barriers.
Despite the neutral price action, the Bollinger Bands on the 12-hour timeframe are showing signs of squeezing, suggesting a potential breakout either to the upside or downside. At the moment, ADA is trading around $0.742, with a modest price increase of over 0.25% in the past 24 hours. However, trading volume has dropped by 18%, indicating a lack of participation from traders and investors due to high volatility.
On-chain analytics firm Coinglass reports that whales and long-term holders are accumulating ADA, with a total outflow of $13.75 million from exchanges in the past 24 hours. This accumulation by large holders during a period of consolidation could reduce selling pressure and pave the way for an upward move in the price of ADA.
In conclusion, ADA’s price action remains neutral, with a potential breakout looming on the horizon. Traders and investors should keep a close eye on key resistance levels and technical indicators to gauge the direction of the next move for ADA on the Cardano blockchain.