ADA, the native token of the Cardano blockchain, has received significant attention from crypto enthusiasts despite the recent price decline. Over the past 48 hours, the price of the altcoin has fallen by more than 30%. However, with increasing interest from long-term holders and traders of Binance, its price appears to be recovering.
$164 million ADA outflow
Today, December 20, 2024, spot ADA inflow/outflow metrics on the Coinglass network showed that exchanges recorded significant ADA outflows of $163.85 million last week, despite the continued decline in altcoin prices.
What does outflow mean in cryptocurrency?
In the cryptocurrency space, “outflow” refers to the movement of assets from exchanges to the wallet addresses of long-term holders, suggesting potential growth momentum and hinting at an ideal buying opportunity.
According to historical data, whenever there is an outflow of assets from exchanges to wallet addresses, it increases buying pressure, resulting in positive momentum.
Growing Interest from Traders
In addition to growing interest from long-term holders, trader interest appears to be growing, Coinglass said. According to the data, open interest in ADA futures has increased by 4.5% over the past four hours, indicating a change in trader sentiment following the recovery in ADA prices.
Current price momentum
At the time of publication, ADA is trading around $0.887 and has fallen 1.9% in the last 24 hours. Over the same period, trading volume increased by 32%, indicating increased participation by traders and investors amid a market recovery.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA successfully retested one of the most important support levels at $0.80, which it recently visited during the market decline. However, with increasing interest from traders and long-term holders, the price is showing potential for growth.
Based on the recent price action, if ADA holds above the $0.80 level, there is a high chance that it could skyrocket 40% to reach the $1.23 level in the coming days.
