Cardano set for a breakout? Key signals hint at major price move!

• Cardano  key support level at $0.3172 hold with potential for a breakout above the downward trendline.
• Exchange outflows and the long/short ratio indicate growing bullish sentiment.

Cardano [ADA] has witnessed a positive movement recently. At press time, ADA’s price stood at $0.3409, a 2.68% surge in the last 24 hours and a 4.44% surge in the last week.

Key support level holds strong

As of writing, ADA was accumulating bullish momentum from a significant support level of $0.3172, which has held as historical psychological support for several weeks. On the chart, Cardano prices were consolidating in an ascending triangle pattern.

ADA was currently approaching a downward trendline that dates back to earlier in 2024.

While prices have tested this resistance on several occasions, Cardano has yet to make a clean breakout above it. 

A break above this trendline, coupled with the strong support level, may signal a bullish reversal.

  Source: Tradingview

The chart reveals a clear descending trendline with a series of lower highs of formation. However, the stochastic RSI indicates a bullish crossover, with the RSI moving up from oversold territory. 

This bullish divergence could signal a potential short-term rally as momentum starts to favor the bulls.

Cardano exchange net flow paints a bullish picture

According to exchange net flow data from Coinglass, Cardano outflows have dominated inflows. This suggests that investors are moving their ADA tokens off exchanges and into cold storage .

This is typically a bullish sign, indicating a lower willingness to sell in the short term.

Source: Coinglass

Liquidation pressure eases Cardano upward rally

AMBCrypto analysis of liquidation heatmap data from Coinglass highlights a key zone of liquidation pressure around the $0.34–$0.36 mark. 

This suggests that short positions are being squeezed, potentially fueling upward price action as bears are forced to cover their positions. 

Source: Coinglass

 Realistic or not, here’s ADA’s market cap in BTC’s terms

Bears versus bulls

Adding to the aforementioned, the Cardano long-short ratio currently favors the longs. There has been a spike in the long-short ratio, which currently stands at 1.31.

Source: Coinglass

With the above addressed positive metrics and indicators, Cardano is positioned for a potential bullish breakout if it can hold above the $0.3172 support and break through the overhead resistance levels.