Despite the ongoing market recovery, ADA, the native token of the Cardano blockchain, seems to be struggling to gain momentum. However, the asset has soared by nearly 4.5% in the past 24 hours and is currently trading near $0.78.
ADA Technical Analysis and Upcoming Level
With this mild upside momentum, ADA’s price remains near a crucial support level of $0.74 and the 200 Exponential Moving Average (EMA) on the daily timeframe. Meanwhile, the chart appears to mirror XRP’s daily and four-hour charts. Additionally, ADA seems to be forming a bullish cup-and-handle pattern with a neckline at the $0.85 level, along with an ascending triangle pattern.
Based on recent price momentum and historical patterns, ADA appears bullish. If the asset holds above the $0.73 level, there is a strong possibility it could soar by 32% to reach $1.04 in the future. However, given the current market sentiment, the $0.85 level seems more likely to be achieved soon.
Bullish On-Chain Metrics
With this bullish price action and the ongoing shift in market sentiment, traders and investors appear to be accumulating and betting on the bullish side, as reported by the on-chain analytics firm Coinglass.
$2.55 Million Worth ADA Outflow
Data from spot inflow/outflow reveals that exchanges continue to witness outflows of millions worth of ADA tokens. However, $2.55 million worth of ADA has flowed out in the past 24 hours, indicating potential accumulation that could trigger buying pressure and upside momentum.
$20 Million Worth Bet on Long Positions
Besides the bullish outlook of long-term holders, intraday traders also seem to be following a similar strategy. Data reveals that bulls are currently dominating the asset and could support ADA in soaring significantly in the coming days. According to Coinglass data, $0.732 is a key level where traders betting on the long side are over-leveraged, holding $20.37 million worth of long positions.
This strong bullish bet suggests that these traders believe the asset’s price won’t fall below this level, reinforcing it as a strong support zone.
