ADA Price Trends Upward: Key Levels to Watch in 2025

Cardano (ADA) is witnessing a notable price surge, with the token trading at $1.05 on January 3, 2025. In the last 24 hours, the coin has jumped by 13.03%, grabbing the attention of traders and investors. This price action has many wondering if Cardano is setting up for a bigger rally, perhaps similar to the strong gains seen in past cycles.

Technical Indicators Point to Continued Bullish Sentiment

ADA’s recent price action has been impressive, with the coin rising by 8.60% to hit $1.0443. This strong upward move comes with growing volume, a sure sign of increasing buying pressure.

The RSI is currently at 59.46, which indicates that while ADA is in bullish territory, it still has room to grow before reaching overbought conditions. A higher RSI might suggest a price correction, but right now, momentum is strong.

Moreover, the MACD line has crossed above the signal line, confirming the bullish trend. Positive histogram bars reinforce the idea that the upward trend will persist. With these strong indicators, ADA’s short-term outlook is positive, with the potential for further price gains.

Support and Resistance Levels to Watch

Key support and resistance levels will be crucial for ADA’s future price action. On the downside, $0.96 is the most recent support level, with the price bouncing off this point before its latest surge. If bearish pressure builds, a further drop could test the $0.88 and $0.80 levels.

Looking at the upside, $1.10 is the immediate resistance, followed by $1.20, a stronger barrier that could limit further gains. If ADA breaks through $1.20, the next resistance zone could be around $1.30, signaling a strong bullish continuation.

Analyzing ADA’s Market Behavior: Net Inflows and Outflows

Besides technical analysis, market inflows and outflows also heavily influence ADA’s price movements. Throughout 2024, ADA’s price had periods of stability, with low volumes of inflows and outflows.

However, from late November to December, there was a spike in outflows, indicating profit-taking and possible liquidations. This happened alongside a sharp price increase. This suggests traders betting on price declines had to cover their positions.

In January, net inflows have climbed, suggesting new money is entering the market. This could signal renewed optimism. This inflow of funds could drive further price gains if the trend holds, especially after the recent correction and liquidation events.