- ADA spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $129 million.
- ADA could surge by 50% to reach $1.90 if it closes a daily candle above the $1.25 level.
Cardano [ADA] is set to experience a significant rise in its circulating supply this week. This token unlock is expected to play an important role in the price action, as ADA currently sits at a crucial level.
$43.5 million of ADA to be unlocked
Data shows that nearly 37.06 million ADA tokens, worth $43.36 million and representing approximately 0.10% of the circulating supply, will be unlocked between the 9th and 16th of December. This significant inflow of tokens into circulation has the potential to trigger a price correction or decline in the future.
In addition to ADA, tokens worth over $1.347 billion, including Solana and Dogecoin, will also be unlocked during the same period.
Cardano technical analysis and upcoming levels
According to AMBCrypto’s technical analysis, ADA was consolidating within a tight range near the resistance level of $1.25 at press time. It has been over a week since the altcoin started consolidating between $1.12 and $1.24.
Experts suggest that either a breakout or a breakdown from this consolidation will determine ADA’s next move in the coming days.
Source: TradingView
ADA price prediction for December 2024
Based on recent price action, if ADA breaks above the upper boundary of the consolidation zone and closes a daily candle above the $1.25 level, there is a strong possibility it could surge by 50% to reach $1.90.
Conversely, if ADA breaks below the lower boundary of the consolidation zone and closes a daily candle below the $1.12 level, it could decline by 20% to reach $0.92 in the coming days.
Given the current market sentiment and investor interest, it appears that ADA is likely to break out and close its daily candle above the $1.25 level.
On the positive side, ADA’s Relative Strength Index (RSI) currently stands at 64, indicating that the altcoin price is below the overbought zone. This suggests that it has enough room to rise further in the future.
Rise of exchanges outflow
This bullish analysis was further supported by whales and institutions, as their interest and confidence in the altcoin have skyrocketed, according to the on-chain analytics firm Coinglass.
Data from ADA spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $129 million since the beginning of December.
Source: Coinglass
Read Cardano [ADA] Price Prediction 2024-2025
In the cryptocurrency context, “outflow” refers to the movement of assets from exchanges to wallet addresses. This notable outflow indicates a potential upside rally and suggests ideal buying opportunities.
At press time, ADA was trading near $1.15 and has registered a price drop of 4.10% in the past 24 hours. During the same period, its trading volume increased by 15%, indicating heightened participation from traders and investors compared to previous days.
