- Cardano remains in a tight consolidation range, with traders watching for a breakout above $0.76 to confirm a bullish move.
- Cardano has seen a $13.75 million outflow from exchanges, signaling potential accumulation by long-term holders.
Cardano (ADA) has been stuck in a prolonged consolidation phase, leaving traders and investors eager for its next big move. Over the past few weeks, ADA has fluctuated between $0.69 and $0.75, showing no definitive trend. However, technical indicators suggest a potential breakout could be imminent.
Cardano Technical Analysis: ADA at a Crucial Crossroad
ADA’s price action has been marked by multiple fakeouts, creating uncertainty in the market. Currently, the asset is testing the upper boundary of its consolidation phase. A decisive move above the $0.76 resistance level, with a confirmed daily close, could trigger a 13% surge toward $0.85.
Despite this potential, Cardano faces stiff resistance at $0.75 and the 200 Exponential Moving Average (EMA) on the daily timeframe. This EMA has consistently capped the asset’s upward movement. Additionally, the Bollinger Bands on the 12-hour chart are tightening, signaling an impending volatile move—either up or down.
Current Price Momentum: Mixed Signals
As of press time, ADA is trading around $0.742, showing a slight 0.25% gain in the past 24 hours. However, the token’s trading volume has dropped by 18%, suggesting hesitation among traders. Lower volume during consolidation often indicates that a major move is approaching.
Whale Accumulation: A Bullish Sign?
Despite the lack of a clear trend, on-chain data shows a significant accumulation of ADA by whales and long-term holders. Coinglass reports that $13.75 million worth of ADA has flowed out of exchanges in the past 24 hours, a signal that large investors are taking their holdings off trading platforms. Such outflows typically reduce selling pressure and set the stage for a bullish breakout.
Breakout or More Consolidation?
ADA’s price movement remains neutral, but all eyes are on the critical $0.76 level. If bulls manage to push past this resistance, ADA could see a significant upswing. However, failure to break out might prolong the consolidation phase. Traders should watch for volume spikes and confirmed breakouts before making their next move.
