- Bollinger Bands seem to be squeezing ADA’s 12 hour chart.
- On-chain metrics revealed exchanges had seen a $13.80M worth of ADA tokens being sold.
Cardano [ADA] Has been in a tight consolidating for over a weeks, and is struggling to gain upward movement.
As of the date this was published, it appeared that the sentiment on the crypto markets had improved, which gave hope to ADA’s upward movement.
Cardano price analysis and technical analysis
AMBCrypto’s technical analysis shows that ADA is consolidating in a narrow range of $0.69 to $0.75.
As the markets recover, the asset’s price has reached the top of the condensing boundary. This is a point where previous reversals have occurred.
TradingView
The 200-day Exponential Moving Average is also a level of resistance, limiting ADA’s upward movement.
Also, there is a popular crypto analyst Bollinger Bands is a technical tool that allows users to express their views on ADA.
Analyst noted in the article that Bollinger Bands on ADA’s 12 hour chart are shrinking. This indicates a potential surge over the next couple of days.
Price momentum of ADA
At the time of publication, ADA was trading at $0.74. This represents a drop of 1.5% in price over the past 24 hours.
The trading volume of the stock fell 10% during this period. It shows that traders and investors are less active in the market as prices consolidate.
ADA’s Relative Strength Index stands at 47. This indicates neither an overbought or oversold condition. Now, the market sentiment may influence price movement.
ADA could reach $0.85 by 13% if it breaks through the 200-day EMA, and closes a candle daily above $0.76.
A breakout of this kind could create further opportunities to move upwards.
Bullish on-chain metrics
According to Coinglass, despite the ongoing price drops and struggles, long-term and whale holders continue to accumulate the token.
According to data from Spot inflow/outflow, exchanges saw a massive outflow of ADA Tokens worth $13.75 Million over the past 24-hours. This indicates that holders may have been accumulating tokens.
Coinglass
In the meantime, intraday investors are following a trend similar to that of day traders.
Coinglass data shows traders currently have long positions worth $12.15 Million, but are overleveraged by $0.71.
Traders have also taken positions short at $0.753, a level where they are holding $9 million in value.
Coinglasses
Over-leveraged levels indicate bulls have taken control of the asset, and they are driving it to end its long consolidation.
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Source: ambcrypto.com
