As the cryptocurrency market shows signs of recovery, Cardano’s native token, ADA, has been making waves with a notable 58% intraday price reversal, signaling its potential for substantial upside momentum. This rebound has sparked growing interest from whales, long-term holders, and investors, fueling expectations for a bullish future for the altcoin.
ADA Technical Analysis: Key Levels and Potential for Growth
Technical analysis reveals that ADA has made a successful return to its bullish range, now trading above the crucial support level of $0.71. Importantly, it has retested its 200 Exponential Moving Average (EMA) on the daily chart, further enhancing the possibility of a bull run. If ADA manages to breach the mild resistance near $0.85 and close a daily candle above $0.86, it could surge by as much as 45%, potentially reclaiming its recent high of $1.25.
The formation of a bullish hammer candlestick pattern adds further credence to this optimistic outlook, signaling that a rally could be on the horizon.
Whale Activity and $82 Million ADA Outflow
Amid this technical strength, ADA has also attracted significant attention from whales and long-term holders. According to on-chain analytics firm Coinglass, exchanges have seen a staggering $82 million worth of ADA flow out in the last 48 hours, indicating potential accumulation. This large outflow suggests that whales are preparing for a continued price surge, which could generate additional buying pressure.
Over-Leveraged Positions Signal Strong Support for ADA
On-chain data also shows that traders are heavily betting on ADA’s upside. The $0.73 level has become a strong support zone, with $35 million worth of long positions held by traders. Conversely, short sellers are relatively weak, with just $3.32 million worth of short positions at the $0.83 level, signaling an imbalance that favors the bulls.
Combining these positive on-chain metrics with technical analysis, ADA appears set for significant upside potential, with the bulls showing strong support as they position for a potential breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano (ADA) Faces Strong Bearish Momentum: Can It Rebound to $1?
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