Cardano Bulls Withdraw $100 Million from Exchanges, Hint at Fresh ADA Surge

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As a seasoned crypto investor who has witnessed the highs and lows of the market, I find the recent dip of Cardano below $1 to be more of an opportunity than a catastrophe. The data suggests that the ADA bulls are not deterred by this slight decline but rather are gearing up for another sustained uptrend.

As a researcher studying the cryptocurrency market, I find that some investors might perceive Cardano‘s recent fall below $1 as devastating. However, it seems that ADA supporters remain undeterred by this minor setback, as on-chain indicators suggest they are preparing for another prolonged upward trend.

Here is an in-depth analysis explaining how things could unfold for the altcoin.

Cardano Investors Stick to Their Bullish Conviction

presently, the value of Cardano stands at $0.98 following a brief increase to $1.15. The modest dip may be connected to the general market downturn experienced the previous day, during which Bitcoin (BTC) plummeted below $95,000.

Currently, data shows that there’s an outflow of approximately $40 million for ADA Spot on exchanges, a decrease from the $63 million outflow observed on November 25. This suggests that Cardano investors have withdrawn around $100 million from exchanges within just two days.

Generally speaking, when token holders withdraw their assets from exchanges instead of selling, it often signals they aren’t intending to sell right away, which might cause the price to rise due to demand increase. On the other hand, an uptick in deposits usually means that holders are looking to sell, possibly leading to a drop in price because of increased supply.

If the flow of funds leaving the exchange keeps increasing, it might lead to a quick recovery in Cardano’s price. Additionally, an indicator suggesting this trend is the Mean Dollar Invested Age, or MDIA.

The Media value refers to the typical age of every token on a blockchain, considering their average buying cost as the weighing factor. An increase in this value suggests that many tokens are not actively changing hands, making it difficult for prices to experience substantial fluctuations.

On the other hand, the 90-day Moving Average Dollar Indexed Average (MDIA) for Cardano has noticeably dropped, implying a rise in trading activity of coins that were previously inactive. If this trend continues, it could make it easier for ADA to move upward as long as there’s an increase in buying demand.

ADA Price Prediction: Uptrend to Continue

The 4-hour ADA price chart indicates the emergence of a ‘bull flag’, a bullish formation that consists of two upward surges followed by a brief phase of sideways movement.

The sequence starts with an intense price surge, known as the ‘flagpole’, fueled by substantial buying activity. This initial surge is followed by a retreat, forming what resembles a rectangle (the flag) due to its parallel trendlines. When the market is bullish, this ‘bull flag’ pattern suggests that after a period of consolidation, the price may continue to climb once the pattern breaks and resumes its upward trajectory.

Given the present circumstances, it’s possible that Cardano’s bulls could drive the price upward, potentially surpassing $1.15. If successful, ADA may then trend toward the $2 level. Conversely, if there’s a rise in selling activity, the price could dip down to around $0.85.

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2024-11-26 11:51