- ADA was up by 9% in the last 24 hours, while whales accumulated more tokens.
- Most market indicators were bullish, but bearish sentiment remained dominant.
After a week-long double-digit decline, Cardano [ADA] finally managed to hold its ground by painting its daily chart green. Thanks to the recent price uptick, the majority of ADA holders were enjoying profits.
Therefore, AMBCrypto took a look at the token’s health to see what helped ADA register these gains.
Cardano investors are enjoying profits!
Cardano shed quite a lot of its value last week as its price dropped by more than 14%. Thankfully, things turned in the blockchain’s favor soon as its daily chart turned green.
According to CoinMarketCap, ADA was up by more than 9% in the last 24 hours alone. At the time of writing, ADA was trading at $0.5331 with a market capitalization of over $18 billion, making it the eighth largest crypto.
The good news was that ADA’s price hike was accompanied by a rise in trading volume, which is generally considered to be a positive signal. Because of the price uptick, ADA became a hot topic of discussion in the crypto space, as evident from the rise in its social volume.
Source: Santiment
It was surprising to see that despite the price rise, ADA’s Weighted Sentiment continued to remain low, meaning that bearish sentiment was dominant in the market.
Nonetheless, AMBCrypto’s analysis of IntoTheBlock’s data revealed that the price uptick did make more than 50% of Cardano investors profitable.
Source: IntoTheBlock
A possible reason for this uptrend, apart from the bullish market condition, could be the whale activity around the token. Santiment’s data revealed that while small holders did not increase their holdings while whales acted differently.
The number of ADA holders with more than 100 million tokens did accumulate more as evident from the chart. Not only that, whale activity at large was also high, as ADA’s whale transaction count remained high throughout the last week.
Source: Santiment
Will Cardano maintain this trend?
The hike in the token’s price also resulted in a spike in ADA’s daily on-chain transaction volume in profit chart on the 8th of January 2024. Nonetheless, its MVRV ratio still remained low.
Source: Santiment
Realistic or not, here’s ADA’s market cap in BTC terms
To better understand what to expect from ADA, AMBCrypto checked its daily chart. Our analysis found that ADA’s price rebounded from the bottom limit of the Bollinger Bands, suggesting a further rise in its price.
Additionally, another bullish indicator was Cardano’s Money Flow Index (MFI), as it also registered an uptick.
Source: TradingView