Newton Gitonga
Cryptocurrencies traded in the green on Wednesday as the bulls staged recoveries after early this week’s flash crash.
The improving sentiments have triggered notable price surges in ADA, rescuing the altcoin from yesterday’s plunge.
Cardano’s native token jumped from a daily low of $0.9182 to the $1.1049 peak. That translated to an impressive 20.82% daily surge.
The upside stance emerged as cryptocurrencies jumped as the financial space braced for US inflation data later today.
The upcoming economic report will likely confirm the movement of lowering inflation has halted, though not to a point where the Fed will refrain from rate cuts next week.
Analysts expect favorable outcomes for cryptocurrencies, forecasting continued gains in December.
ADA exchange outflows hint at accumulation
The spot outflow/inflow stats show exchanges have witnessed a staggering $185.89 million ADA outflows since early December.
Outflows mean the transfer of digital tokens from exchanges to individual addresses, highlighting acquisitions.
Furthermore, increased outflows suggest possible bullish momentum, confirming a probable buying zone.
These trends affirm long-term holders’ confidence in ADA’s future performance.
Cardano price actions
ADA lost the vital $1 zone on Monday as the Cardano Foundation’s hack deteriorated sentiments around the token
. It kick-started recoveries from the lows on Tuesday.
Meanwhile, support from long-term investors and whales prevented Cardano from violating the $1 support.
ADA trades at $1.09 after slight declines from 24-hour highs.
It boasts bullish momentum and signals continued upswings.
Technical analysis signals a bullish trend following a successful retest and rebound.
Thus, bulls can push toward $1.25 in the upcoming days, a 14.68% gain from current values.
Analysts backed ADA’s bullish prospects.
For instance, Cardano advocate Dan Gambardello trusts Cardano will explore $3 by early January.
Highlighting ADA’s historical trends during the 2020/2021 bull run, Gambardello forecasts a swift move to $2.
The analyst predicts $3 per ADA token come January 10.
The Cardano pump to $2 will likely be here sooner than most people realize.
And according to cycle data, the pump back to $3 could realistically occur by January 10.
Since I’m usually slightly early with these things, let’s say January 24th.
Nevertheless, he added that January 24 could be the perfect timeline for such highs.
Meanwhile, Ali Martinez underscored a crucial level that ADA bulls should hold for stable uptrends.
The analysts emphasized that $1.20, where about 93K addresses hold 2.54 billion tokens, is vital for Cardano’s upward momentum.
Failure to keep $1.20 will likely support bearish actions below the $1 psychological level.
Martinez highlighted bearish sentiments threatening the altcoins.
For example, approximately 70% of holders are experiencing losses at current prices (IntoTheBlock data).
Such cases might trigger additional selling momentum, disrupting minor price bounce-backs.
Nonetheless, the demand territory at $0.98 – $1.02 provides some encouragement.
The region, where 41,720 wallets hold 1.03 billion coins, could offer a temporary cushion amid magnified selling pressure.
The post Cardano reclaims $1 after a 21% surge; time to buy ADA? appeared first on Invezz
