Cardano (ADA) has been a focal point in the crypto community following a remarkable price rebound over the past 24 hours. After enduring a decline of over 30% in recent days, ADA’s recovery has reignited interest among traders and long-term holders alike, signaling potential for further gains.
On-chain data from Coinglass revealed that despite the recent downturn, ADA has seen a significant outflow of tokens from exchanges, totaling $150.89 million. This metric, known as Spot Inflow/Outflow, tracks the movement of tokens between wallets and exchanges, and such substantial outflows often indicate growing investor confidence. It suggests that traders and holders are withdrawing ADA from exchanges to hold in private wallets, possibly in anticipation of future price increases.
The optimism is further supported by Coinglass’s Long/Short Ratio, which currently stands at 1.04, marking its highest point since mid-November 2024. A ratio above one highlights a bullish sentiment among traders, with more participants betting on ADA’s price rising than falling.
From a technical analysis perspective, ADA has recently retested a key support level at $0.80, which had not been revisited since its previous breakout. This retest, followed by a strong rebound above the $0.97 level, suggests that this support zone is holding firm. Additionally, the formation of a bullish hammer candle at this level reinforces the positive outlook for ADA’s price movement.
If ADA manages to close a daily candle above the crucial psychological level of $1, analysts predict a potential surge of up to 25%, which could push the altcoin to $1.24. This target aligns with recent price action and momentum indicators, which point toward further gains if current trends persist.
At the time of writing, ADA is trading near $0.99, reflecting a 12% increase in the past 24 hours. Its trading volume has also risen by 30% over the same period, underscoring heightened market activity and trader participation.
The broader crypto market has also shown signs of recovery, with several major cryptocurrencies posting gains after a period of volatility. This collective recovery may lend additional support to ADA’s upward trajectory.
For investors, ADA’s recent performance highlights a critical juncture. Sustaining its price above $0.95 while breaking through the $1 resistance level could set the stage for a continued rally. On-chain data and technical indicators both point to a bullish sentiment, suggesting that ADA may be poised to capitalize on this momentum in the near future.
As always, traders and investors should remain cautious, considering the inherent volatility of the cryptocurrency market. However, with strong support levels, increased trading activity, and growing confidence among long-term holders, ADA appears well-positioned to achieve its next price target of $1.24.