Cardano (ADA) has been trapped in a tight consolidation for over a week, struggling to gain upward momentum. However, improving market sentiment could offer the push needed for ADA to break out and resume its bullish trajectory.
Technical Analysis and Price Action
According to AMBCrypto’s latest analysis, ADA has been moving within a narrow range between $0.69 and $0.75. The upper boundary of this consolidation zone has acted as a resistance level, leading to price reversals in previous attempts to break higher.
The 200-day Exponential Moving Average (EMA) is another critical resistance level, capping ADA’s upward movement. A prominent crypto analyst on X (formerly Twitter) highlighted that the Bollinger Bands on ADA’s 12-hour chart are narrowing, signaling a potential volatility spike in the coming days.
The Bollinger Bands are squeezing on #Cardano $ADA 12-hour chart, signaling a potential spike in volatility is on the horizon. pic.twitter.com/sHasRsCJZF
— Ali (@ali_charts) March 26, 2025
ADA’s Price Momentum
At press time, ADA is trading at approximately $0.74, reflecting a slight 1.5% decline in the last 24 hours. Trading volume also dipped by 10%, indicating a decrease in market participation amid the consolidation phase.
The Relative Strength Index (RSI) stands at 47, suggesting that ADA is neither overbought nor oversold. Market sentiment could play a crucial role in determining the next price movement.
If ADA successfully breaks past the 200-day EMA and closes a daily candle above $0.76, a 13% rally toward $0.85 could be on the horizon. Such a breakout could further strengthen bullish momentum.
On-Chain Metrics Indicate Accumulation
Despite its recent struggles, ADA is seeing strong accumulation by whales and long-term holders. On-chain analytics from Coinglass reveal that $13.75 million worth of ADA tokens have flowed out of exchanges in the past 24 hours, signaling investor confidence.
Additionally, Coinglass data shows that traders are over-leveraged at key price points. Long positions worth $12.15 million are stacked around $0.71, while short positions totaling $9 million are concentrated near $0.753. This suggests that bullish forces are prevailing and could soon drive ADA out of its consolidation range.
With market sentiment on the rise and technical indicators aligning for a potential breakout, ADA investors are watching closely for the next big move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
Also Read: Cardano (ADA) Faces Whale Sell-Off: Can Retail Traders Prevent a Further Drop?
