ADA is the native token of the Cardano blockchain, and it has achieved a significant breakthrough in price. It has broken the $1 mark for the first time in two years. As of the writing of this article, the trading price of this altcoin is $1.09, the highest price level since April 2022.
In the past 24 hours, the price of ADA surged by 24%, with trading volume increasing by 131% over the same period. With increasing buying pressure, the price momentum of Cardano is expected to continue.
Cardano holders see green.
Cardano has broken through the $1 mark, allowing many holders to profit. According to IntoTheBlock's global inflow/outflow indicator, 3.15 million addresses are in a 'funds inflow' state, accounting for 71% of all ADA holders.
An address is considered to have 'profitable assets' if the current market price of the assets held by that address is higher than the average cost at which the address acquired those tokens. This means that if the holder sells their assets at the current market price, they will make a profit.
On the contrary, 715,230 addresses (accounting for 16% of all ADA holders) are in an 'unprofitable state'. If sold at the current price, these addresses would incur losses. According to data from IntoTheBlock, this group of investors purchased their tokens when the ADA price exceeded $1.40.
Cardano Global Inflow/Outflow.
Notably, due to many addresses now holding unrealized profits, long-term holders (LTH) of ADA are repositioning, possibly to take profits. This activity is reflected in the surge of ADA's age consumption indicator, which, according to Santiment's data, soared to a monthly high of 86.91 billion when the upward trend began on November 22.
This surge is noteworthy because long-term holders rarely transfer their tokens. When they do, it often signals a shift in market trends. Thus, as in the case of ADA, if the surge is accompanied by increased trading volume and positive price action, it indicates that long-term holders are taking profits. This could further drive prices up as new buyers enter the market.
The era of Cardano has nearly exhausted.
ADA Price Prediction: Strong Uptrend.
On the daily chart, the Aroon Up line for ADA is 100%. The Aroon indicator measures the strength and direction of a trend. When the Aroon Up line is at 100%, it indicates a strong upward trend, suggesting that recent highs and bullish momentum may continue.
If this situation continues and new demand keeps entering the market, the price of Cardano is expected to rise to $1.24, which is the price peak reached in March 2022.
Cardano Price Analysis.
On the other hand, if profit-taking intensifies and buying pressure weakens, the price of ADA may drop to retest the support level at $1. If this level fails to hold, a downward trend will be confirmed, and the price of ADA will fall to $0.85.
