The ADA code, the native coin of the Cardano blockchain, has reached a significant price milestone. It has surpassed the $1 mark for the first time in two years. As of now, this altcoin is trading at $1.09, a price not seen since April 2022.
In the past 24 hours, the price of ADA surged by 24%, and its trading volume increased by 131% during the same period. With increasing buying pressure, the price momentum of Cardano is expected to continue.
Cardano Holders See Profits
Cardano's surpassing of the $1 mark has brought profits to many holders. According to the Global In/Out of the Money metric from IntoTheBlock, 3.15 million addresses, accounting for 71% of total ADA holders, are 'in profit'.
An address is considered 'profitable' if the current market price of the asset it holds is higher than the average cost of acquiring those tokens. This means that holders will profit if they sell their current assets at the current market price.
Conversely, 715,230 addresses, accounting for 16% of the total ADA holders, are currently 'losing'. These addresses will incur losses if sold at the current price. According to data from IntoTheBlock, this group of investors bought the coin when ADA was selling above $1.40.
Cardano Global In/Out of the Money. Source: IntoTheBlock
Notably, with many addresses currently holding unrealized profits, the long-term holders (LTH) of ADA are restructuring their portfolios, possibly to secure profits. This activity is reflected in the 'age consumed' metric of ADA, which, according to Santiment data, climbed to a monthly high of 86.91 billion on November 22, when the uptrend began.
This surge is noteworthy because long-term holders rarely move coins. When they do, it often suggests a shift in market trends. Therefore, as in the case of ADA, if the surge is accompanied by increased trading volumes and positive price action, it suggests that long-term holders are locking in profits. This could further drive price increases as new buyers enter the market.
Cardano Age Consumed. Source: Santiment
ADA Price Prediction: Strong Uptrend
On the daily chart, the Aroon Up line of ADA reached 100%. The Aroon indicator measures the strength and direction of a trend. When the Aroon Up line reaches 100%, it indicates a strong uptrend, suggesting recent peaks and the potential for continued upward momentum.
If this is maintained and new demand continues to flood the market, the price momentum of Cardano will continue to aim for $1.24, the peak price it last reached in March 2022.
Cardano Price Analysis. Source: TradingView
On the other hand, if profit-taking increases and buying pressure weakens, the price of ADA could drop to test support levels at $1. If this level fails to hold, a downtrend will be confirmed, and the price of ADA could fall to $0.85.
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