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Cardano (ADA) is gaining momentum following a breakout from a bullish inverted head-and-shoulder pattern, indicating potential for a significant price rally.
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The altcoin’s recent upward trend is bolstered by strong whale activity and a notable outflow of funds from exchanges, adding to its bullish sentiment.
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According to Coinglass, exchanges have seen a significant outflow of $203.2 million since late November, reflecting increased confidence from long-term investors.
Cardano’s price is showing bullish signals after breaking key resistance, with whales withdrawing significant amounts, indicating strong engagement in ADA.
Technical Insights: Cardano’s Price Levels
Recent analysis from COINOTAG highlights that ADA has successfully broken out of a bullish inverted head-and-shoulders formation. This technical pattern is often seen as a precursor to upward momentum.
If ADA can close above the crucial $1.07 mark with a four-hour candle, analysts predict a potential rally of up to 15% towards the $1.24 resistance level. Furthermore, a sustained breakout beyond this point could see ADA targeting as high as $1.52 in the near term.
Source: TradingView
Whale Activity Fuels ADA’s Momentum
In addition to technical indicators, the active participation of investors, particularly whales, is playing a crucial role in Cardano’s bullish trajectory. Data from Coinglass indicates that since November 23, 2024, a notable outflow of $203.2 million has been recorded across exchanges.
This outflow suggests that large holders are moving ADA to private wallets, instead of keeping it on exchanges, a sign often interpreted as a strong bullish sentiment. Such movements reflect confidence in ADA’s long-term prospects.
Source: Coinglass
Increasing Open Interest: A Bullish Signal
Further emphasizing the positive outlook for Cardano, the Open Interest (OI) for ADA has seen a significant increase. Recent statistics show that OI surged by 12.9% in just 24 hours, with a more modest increase of 3.75% within the last four hours.
This rise in Open Interest, coupled with the substantial capital outflow and positive price momentum, points to increased involvement from both retail and institutional traders, suggesting a robust underlying demand for ADA.
At this moment, ADA holds a trading price near $1.07, appreciating over 6.45% in the past 24 hours. However, it’s worth noting that trading volume has decreased by 30% during the same period, indicating lower market participation relative to previous trading sessions.
Conclusion
In summary, Cardano’s current price action, bolstered by technical bullish patterns, significant whale outflows, and increasing Open Interest, paints a compelling picture for potential future growth. As market conditions remain favorable, ADA appears well-positioned for continued momentum, but investors should remain cautious of potential volatility.
