Cardano [ADA]: How THIS price could trigger 13% gains – A rally imminent?
ADA could soar by 13% to reach $0.85 if it closes a daily candle above $0.76 mark.
- Bollinger Bands appear to be squeezing on ADA’s 12-hour chart, signaling a potential upside rally.
- The on-chain metric revealed that exchanges have witnessed an outflow of $13.80 million worth of ADA tokens.
Cardano [ADA] has been stuck in a tight consolidation for over a week, struggling to gain upward momentum.
At the time of writing, the crypto market sentiment appeared to be improving, giving hope that ADA might break through and resume its upward rally.
Cardano’s technical analysis and price action
According to AMBCrypto’s technical analysis, ADA has been consolidating within a tight range between $0.69 and $0.75.
As the market recovers, the asset has hit the consolidation’s upper boundary, a level where reversals occurred previously.
Meanwhile, the 200-day Exponential Moving Average (EMA) is also acting as a resistance level, limiting ADA’s upward movement.
Additionally, a prominent crypto analyst shared a post on X (formerly Twitter) and expressed their view on ADA using a technical indicator called the Bollinger Bands.
In the post, the analyst noted that the Bollinger Bands are narrowing on ADA’s 12-hour chart, signaling a potential spike in the coming days.
ADA’s price momentum
At press time, ADA traded near $0.74, reflecting a 1.5% price drop in the last 24 hours.
During the same period, its trading volume fell by 10%, showing reduced trader and investor participation amid price consolidation.
ADA’s Relative Strength Index (RSI) stood at 47, signaling neither overbought nor oversold conditions. Market sentiment could now influence the price direction.
If ADA breaks past the 200-day EMA and its consolidation range, closing a daily candle above $0.76, it could rise by 13% to reach $0.85.
Such a breakout could also create opportunities for further upward momentum.
Bullish on-chain metrics
Despite the price drop and ongoing struggles, whales and long-term holders have been accumulating the token, as reported by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of a significant $13.75 million worth of ADA tokens over the past 24 hours, indicating potential accumulation by holders.
Meanwhile, intraday traders are also following a similar trend.
Coinglass data reveals that traders are currently over-leveraged at $0.71 on the lower side, with $12.15 million worth of long positions.
On the other hand, the $0.753 level is another over-leveraged zone, where traders have held $9 million worth of short positions.
The over-leveraged levels suggest bulls are dominating the asset and are likely driving it toward ending its prolonged consolidation.
