ADA, the native token of the Cardano blockchain, is poised to reverse its downtrend as it has reached a level where it has historically witnessed an impressive rally. The overall market experienced a decline following the presidential inauguration of pro-crypto Donald Trump, likely driven by profit-taking.
Today, January 23, 2025, a prominent crypto expert posted on X (formerly Twitter) that the technical indicator TD Sequential is indicating a buy signal for ADA.
Besides the expert prediction, ADA is currently experiencing price consolidation within a narrow range between $0.954 and $1.03 at the support level of an inclined trendline. Since November, ADA has found support at this level four times, each time witnessing impressive upward momentum.
Based on recent price action and historical momentum, if ADA breaks out of its ongoing consolidation and closes a daily candle above the $1.04 level, there is a strong possibility it could surge by 15% to reach the $1.15 level in the near future.
On the positive side, the Relative Strength Index (RSI) is at 47, suggesting a potential price reversal soon. However, this optimistic outlook for ADA will only hold if it remains above the $0.95 level, otherwise, it may fail.
Despite the price speculation, over the past seven days, it appears that long-term holders and investors have been significantly accumulating ADA tokens, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow revealed that exchanges during the same period witnessed an outflow of ADA tokens worth $146.60 million.
This substantial outflow from exchanges indicates potential accumulation, which could lead to buying pressure and a further upside rally. Additionally, it suggests an ideal buying opportunity.
ADA is currently trading near $0.98, with a modest 0.80% price decline over the past 24 hours. Its trading volume has dropped by 8% during this period but is gradually recovering, hinting at increased trader and investor participation.
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