- Cardano key support level at $0.3172 hold with potential for a breakout above the downward trendline.
- Exchange outflows and the long/short ratio indicate growing bullish sentiment.
Cardano [ADA] has witnessed a positive movement recently. At press time, ADA’s price stood at $0.3409, a 2.68% surge in the last 24 hours and a 4.44% surge in the last week.
Key support level holds strong
As of writing, ADA was accumulating bullish momentum from a significant support level of $0.3172, which has held as historical psychological support for several weeks. On the chart, Cardano prices were consolidating in an ascending triangle pattern.
ADA was currently approaching a downward trendline that dates back to earlier in 2024.
While prices have tested this resistance on several occasions, Cardano has yet to make a clean breakout above it.
A break above this trendline, coupled with the strong support level, may signal a bullish reversal.
Source: Tradingview
The chart reveals a clear descending trendline with a series of lower highs of formation. However, the stochastic RSI indicates a bullish crossover, with the RSI moving up from oversold territory.
This bullish divergence could signal a potential short-term rally as momentum starts to favor the bulls.
Cardano exchange net flow paints a bullish picture
According to exchange net flow data from Coinglass, Cardano outflows have dominated inflows. This suggests that investors are moving their ADA tokens off exchanges and into cold storage .
This is typically a bullish sign, indicating a lower willingness to sell in the short term.
Source: Coinglass
Liquidation pressure eases Cardano upward rally
AMBCrypto analysis of liquidation heatmap data from Coinglass highlights a key zone of liquidation pressure around the $0.34–$0.36 mark.
This suggests that short positions are being squeezed, potentially fueling upward price action as bears are forced to cover their positions.
Source: Coinglass
Realistic or not, here’s ADA’s market cap in BTC’s terms
Bears versus bulls
Adding to the aforementioned, the Cardano long-short ratio currently favors the longs. There has been a spike in the long-short ratio, which currently stands at 1.31.
Source: Coinglass
With the above addressed positive metrics and indicators, Cardano is positioned for a potential bullish breakout if it can hold above the $0.3172 support and break through the overhead resistance levels.
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