ADA is the native token of the Cardano blockchain and has made significant breakthroughs in price. It has broken through the $1 mark for the first time in two years. As of the time of writing, this altcoin is trading at $1.1, which is the highest price level since April 2022.
In the past 24 hours, the price of ADA has surged by 27%, with trading volume increasing by 131% during 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 'money inflow' status, accounting for 71% of all ADA holders.
An address is considered to have 'valuable assets' if the current market price of the assets it holds is above the average cost at which it acquired those tokens. This means that if the holder sells their assets at the current market price, they will make a profit.
Conversely, 715,230 addresses (16% of all ADA holders) are in an 'underwater' state. If these addresses were to sell at the current price, they would incur losses. According to data from IntoTheBlock, this group of investors bought their tokens when the ADA price exceeded $1.40.
It's noteworthy that since many addresses are 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 metric, which, according to Santiment's data, soared to a monthly high of 86.91 billion at the start of the uptrend on November 22.
This surge is noteworthy because long-term holders rarely move their tokens. When they do, it often signals a shift in market trends. Therefore, as with ADA, if the surge is accompanied by increased trading volume and positive price action, it indicates that long-term holders are taking profits. As new buyers enter the market, this could further drive the price up.
ADA Price Prediction: Strong Uptrend
On the daily chart, the ADA's Aroon Up line is at 100%. The Aroon indicator measures the strength and direction of a trend. When the Aroon Up line is at 100%, it indicates a strong uptrend, suggesting that recent highs and bullish momentum may continue.
If this situation continues and new demand keeps entering the market, the price of Cardano (ADA) will continue to rise to $1.24, which is the price peak reached in March 2022.
On the other hand, if profit-taking intensifies and buying pressure weakens, the price of ADA may drop to re-test the $1 support level. If this level fails to hold, the downtrend will be confirmed, and ADA's price will fall to $0.85.
