Posted: December 21, 2024

• ADA’s Long/Short Ratio stood at 1.04, indicating a strong bullish sentiment among traders.
• Cardano (ADA) could soar by 25% to reach the $1.24 mark if it closes a daily candle above $1.

Cardano [ADA], has garnered significant attention from crypto enthusiasts following its impressive price recovery over the past 24 hours.

In addition to ADA, other major cryptocurrencies have also experienced price recoveries after notable declines in recent days.

$151M ADA outflow signals growing confidence

However, data from the on-chain analytics firm Coinglass revealed that despite a continuous price decline of over 30% in the past few days, long-term holders appear to be accumulating tokens and taking advantage of the price drop.

ADA’s Spot Inflow/Outflow data shows that exchanges across the cryptocurrency landscape have witnessed a significant outflow of $150.89 million worth of ADA.

These on-chain metrics help crypto enthusiasts understand the amount of tokens withdrawn from exchanges. They also indicate a potential upside rally and an ideal buying opportunity.

In addition to strong participation from long-term holders, traders’ interest is also surging, as revealed by Coinglass’s Long/Short Ratio. At the time of writing, the ADA’s Long/Short Ratio stood at 1.04, the highest since mid-November 2024.

A ratio above one indicates strong bullish sentiment among traders.

Cardano’s technical analysis and key-level

The rising interest from long-term holders and traders follows the successful retest of a strong support level at $0.80.

According to AMBCrypto’s technical analysis, ADA has successfully retested its past breakout level during the recent price decline, a level it had not previously revisited.

The price then rebounded above the crucial support level of $0.97.

Additionally, the altcoin has formed a bullish hammer candle at the support level, signaling a bullish outlook for ADA holders.

Based on recent price action, if ADA sustains above $0.95 and closes a daily candle above $1, it could potentially surge by 25% to reach $1.24 soon.

Read Cardano’s [ADA] Price Prediction 2023-24

At press time, ADA was trading near $0.99, having experienced an upside momentum of over 12% in the past 24 hours.

Its trading volume also surged by 30% during the same period, indicating increased participation from traders and investors amid a bullish outlook.