ADA, the native token of the Cardano blockchain, is showing signs of continuing its upward trajectory due to a bullish price action pattern formation. Despite recent gains, ADA is currently consolidating near the strong resistance level of $1.25 and struggling to break through.
Cardano (ADA) Technical Analysis and Upcoming Level
During this consolidation phase, technical analysts at CoinPedia have identified a bullish flag and pole pattern on the four-hour chart. If ADA manages to break above the $1.25 level and close a four-hour candle above it, there is potential for a 30% surge towards the $1.63 level in the near future.
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Currently, the Relative Strength Index (RSI) for ADA is at 54, indicating that it is not in the overbought zone yet. This suggests that ADA still has room to climb higher in the days ahead. The RSI is a useful tool for traders and investors to gauge whether an asset is overbought or oversold.
$98.4 Million of ADA Outflow From Exchanges
According to on-chain analytics firm Coinglass, there has been a significant outflow of $98.37 million worth of ADA from exchanges. This indicates strong interest from investors and whales in the altcoin.
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Historically, such outflows from exchanges often precede upward price movements, presenting a potential buying opportunity and reducing the risk of a price decline.
With a combination of bullish on-chain metrics and technical analysis, it seems that ADA is well-positioned to break through the $1.25 resistance level.
Current Price Momentum
Currently, ADA is trading around $1.22 with a 1.5% gain in the last 24 hours. However, trading volume has decreased by 20%, indicating lower participation compared to the previous day.
