Will the Cardano Coin Price Rally Continue?
ADA, the native currency of the Cardano blockchain, has achieved a major price breakthrough. It crossed the $1 mark for the first time in two years. As of this writing, the altcoin is trading at $1.09, a price level last observed in April 2022. `
The price of ADA has surged by 24% in the past 24 hours, with trading volume increasing by 131% during the same period. Cardanocoin’s price rise is expected to continue as buying pressure intensifies.
Cardano holders see green
Cardano rises above $1 The price mark makes its many holders profitable. According to IntoTheBlock’s global inflow/outflow indicator, 3.15 million addresses (71% of all ADA holders) are “in funds.”
An address is said to be “in-the-money” if the current market price of the assets it holds is higher than the average cost to that address to acquire those tokens. This means that holders will make a profit if they sell their shares at the current market price.
In contrast, 715,230 addresses (16% of all ADA holders) have “no money.” These addresses would incur a loss if sold at current prices. According to data from IntoTheBlock, this group of investors purchased their tokens when ADA was selling for above $1.40.
Notably, with many addresses now holding unrealized profits, long-term holders of ADA (LTH) are repositioning to secure gains. This activity was reflected in a surge in the ADA age consumption indicator, which surged to a monthly high of 86.91 billion at the start of the uptrend on Nov. 22, according to Santiment.
This surge is noteworthy because long-term holders rarely move their coins. When they appear, they usually signal a shift in market trends. so, Just like the ADA exampleif the surge is accompanied by increased trading volume and positive price action, it indicates that long-term holders are taking profits. This could further push prices higher as new buyers enter the market.
ADA Price Prediction: Strong Uptrend
On the daily chart, ADA’s Aron Upside is at 100%. The Aron indicator measures the strength and direction of a trend. When the Aroon Ascending Line is at 100%, it indicates a strong uptrend, indicating a potential continuation of recent highs and bullish momentum.
If this continues and new demand continues to enter the market, the price of Cardanocoin will continue to rise towards $1.24, the price high it last reached in March 2022.
On the other hand, if profit-taking intensifies and buying pressure subsides, ADA price may decline to retest the $1 support. If this level fails to hold, the downtrend will be confirmed and The price of ADA will plummet to $0.85.
Disclaimer
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