Cardano: Is This a Sustained Rally
Journalist
- At press time, ADA’s outstanding shares were 81% profitable.
- The price increase coincided with a dramatic increase in ADA network activity.
Cardano’s ADA uptrend was halted after a slight decline in the last 24 hours of trading.
ADA corrected, but sentiment remains bullish
According to CoinMarketCap, the eighth-largest cryptocurrency was down 2.48% at $0.72 at press time.
The broader time frame evoked a bullish outlook as ADA rose 23.23% in a week and 38% in a month.
During an up market, it was not uncommon to see such corrections.
AskFX analyzed Santiment data and found that 81% of the circulating ADA supply was making a profit at press time. This is up from 69% a year ago.
Investors, especially those with weak hands, were forced to exit the market and liquidate their positions due to increased profitability.
Source: Santiment
On-chain indicators are a promise
The price increase coincided with a dramatic increase in ADA network activity. Over the past week, daily addresses increased by 28% while daily transaction volume increased by 12%.
Source: Santiment
There has also been an increase in the number of large transactions over $1 million. This suggests that whale investors are actively involved in the ecosystem.
While the smaller whales with 1,000-1,000,000 coins liquidated their assets for profit, the 1,000,000-10,000,000 cohort was seen accumulating ADA throughout the week.
Source: Santiment
Popular on-chain researcher Ali Martinez pointed out in a recent X (formerly Twitter) post that ADA could continue to grow in the future if the fundamentals the network is healthy.
ADA’s current situation in the futures markets
AskFX examined the Coinglass data to find that the ongoing rally prompted significant investments by the ADA derivatives trader.
At the time of writing, the money locked in outstanding ADA futures contracts increased to $533 million. This is the highest amount since November 2021.
Source: Coinglass
What is the current value of 1,10,100 ADAs?
Unexpectedly, a larger portion of the market is betting on the falling price of ADA.
The longs/shorts ratio was below 1 all last week. This means that more people held short positions than those who held long positions.
Source: Coinglass
