Amidst the recent recovery in the cryptocurrency market, ADA, the native token of the Cardano blockchain, has shown a remarkable rebound and is set for substantial upside potential. This bullish outlook is supported by a record 58% intraday price reversal and a growing interest from whales, long-term holders, and investors.
ADA Technical Analysis and Upcoming Level
Expert technical analysis indicates that ADA has experienced a significant price reversal, returning to its bullish range and trading above the critical support level of $0.71. Furthermore, the altcoin has successfully retested its 200 Exponential Moving Average (EMA) on the daily timeframe, making it more favorable for a potential bull run. Based on recent price action and historical momentum, ADA may encounter mild resistance near $0.85. If it manages to surpass this level and close a daily candle above $0.86, there is a strong possibility of a 45% surge, leading to a reclaim of its recent high of $1.25. Additionally, ADA has formed a bullish hammer candlestick pattern, further supporting this positive outlook and signaling a potential upcoming rally.
$82 Million Worth ADA Outflow
Whales and long-term holders have continued their accumulation of ADA, which began in the past 24 hours following a sharp decline. According to on-chain analytics firm Coinglass, exchanges have witnessed an outflow of $82 million worth of ADA tokens in the last 48 hours. This significant outflow during the ongoing price recovery indicates potential accumulation, which could drive buying pressure and further boost upside momentum.
Traders’ Strong Bet on Long Position
In addition to long-term holders, traders are also heavily leaning towards long positions, as revealed by Coinglass data. Currently, the $0.73 level is considered the over-leveraged zone, where traders hold $35 million worth of long positions, acting as strong support for ADA. On the other hand, $0.83 serves as another over-leveraged level on the short side, with short sellers holding only $3.32 million worth of short positions, significantly lower than the bulls’ long holdings.
In conclusion, when considering all these on-chain metrics alongside technical analysis, it is evident that bulls are back in the market and are backing ADA for significant upside momentum. The future looks promising for ADA as it continues to attract interest from various market participants, setting the stage for a potential rally in the near future.