The recent election results have caused a shift in overall market sentiment, leading to a notable rally in Cardano (ADA) and other major cryptocurrencies. ADA has surged more than 272% in the past 30 days, gaining significant attention from crypto enthusiasts.
Despite this significant upside momentum, on-chain metrics suggest that ADA is poised to continue its rally in the coming days. According to on-chain analytics firm CoinGlass, exchanges have seen a massive $231 million outflow of ADA since November 23, 2024. Outflows like these often lead to price rallies, reduce selling pressure, and attract more investors and traders to the asset.
Currently, ADA is trading near the $1.20 level, experiencing a slight 2% price decline in the past 24 hours. However, it reached a two-year high of $1.326 during the Asian trading session. The trading volume has also surged by 8.5%, indicating increased trader participation and a bullish outlook for ADA.
Experts suggest that ADA is currently facing strong resistance near $1.25 and struggling to breach this level. If the altcoin manages to break and close a daily candle above the $1.30 level, it could potentially see a 32% upside momentum in the near future. Historical price action shows that ADA tends to consolidate before a significant upside rally after reaching or breaking a resistance level.
However, geopolitical uncertainty has emerged as a potential risk factor for ADA’s bullish thesis. Today, December 3, 2024, South Korean President Yoon Suk Yeol declared emergency martial law, triggering a sell-off of assets. If this decline continues unchecked, ADA’s bullish momentum could be at risk.
In conclusion, while ADA has seen significant upside momentum and on-chain data points to further potential gains, investors should remain cautious of geopolitical developments that could impact the cryptocurrency market. Keeping a close eye on price levels and market trends will be crucial in navigating the volatile crypto landscape.