Time to Buy Cardano? $186 Million ADA Flows Out of Exchanges
Chandan Gupta11 Dec 20242 min read
ADA, the native token of the Cardano blockchain, is poised for upside momentum as it has formed a bullish price action pattern on the daily time frame. Today, December 11, 2024, ADA has soared more than 8% after yesterday’s price decline of over 23%.
Whales’ Rising Interest in ADA
This notable shift in price occurred potentially due to the interest and confidence of investors and long-term holders in Cardano. It appears that whales and long-term holders are continuously betting on the hope of an upside rally, as reported by the on-chain analytics firm Coinglass.
$186 Million of ADA Outflow From Exchanges
ADA spot inflow/outflow data revealed that exchanges have witnessed a significant $185.89 million worth of ADA outflow since the beginning of December 2024. In cryptocurrency, outflow refers to the movement of assets from exchanges to wallet addresses, which hints at potential acquisitions. Additionally, this outflow indicates potential upside momentum and further suggests an ideal buying opportunity.
Cardano (ADA) Technical Analysis and Upcoming Levels
This strong support from whales and long-term holders has prevented ADA from breaching its crucial support level of $1.00. According to expert technical analysis, the altcoin appears bullish as it has successfully retraced and is now moving upward. Based on the recent price action, there is a strong possibility it could soar by 15% to reach the $1.25 level in the coming days.
On the positive side, ADA’s Relative Strength Index (RSI) currently stands at 58, which is below the overbought area, indicating that ADA has enough room to rally in the coming days.
Current Price Momentum
At press time, ADA is trading near $1.08 and has registered a price gain of over 7.10% in the past 24 hours. During the same period, its trading volume dropped by 28%, indicating lowered participation from traders and investors compared to previous days.
