ADA, the native coin of the Cardano blockchain, has made a significant price breakthrough. It has crossed the $1 mark for the first time in two years. At the time of writing, the altcoin is trading at $1.09, a price level last seen in April 2022.
In the past 24 hours, the price of ADA has surged by 24%, and its trading volume has increased by 131% in the same period. With increasing buying pressure, the Cardano coin’s price rally is set to continue.
Cardano Holders Celebrate Profits
Cardano’s rise above $1 has put many of its holders in a profit-making position. According to IntoTheBlock’s Global In/Out of the Money indicator, 3.15 million addresses, representing 71% of all ADA holders, are in profit.
An address is “in profit” if the current market price of the asset it holds is higher than the average cost at which the address acquired those tokens. This means that the holder would make a profit if they sold their holdings at the current market price.
On the other hand, 715,230 addresses, representing 16% of all ADA holders, are “at a loss.” These addresses would have made a loss if they sold at the current price. According to data from IntoTheBlock, this group of investors acquired their coins when ADA was trading above $1.40.
Cardano Global In/Out of the Money. Fonte: IntoTheBlock
Indeed, with many addresses now holding unrealized profits, ADA long-term holders (LTHs) are repositioning themselves, potentially to lock in gains. This activity is further reflected by the rise in ADA’s age of use indicator, which, according to data from Santiment, spiked to a monthly high of 86.91 billion on November 22, when the uptrend began.
This increase is notable because long-term holders rarely move their coins. When they do, it usually indicates a change in market trends. Therefore, as in the case of ADA, if the increase is accompanied by increasing trading volume and positive price action, it suggests that long-term holders are taking profits. This could fuel further price increases as new buyers enter the market.
Cardano Age Consumed. Fonte: Santiment
ADA Price Prediction: The Uptrend is Strong
On the daily chart, 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 a recent spike and a potential continuation of the bullish momentum.
However, if this holds and new demand continues to enter the market, the Cardano coin price rally will continue towards $1.24, a price peak last reached in March 2022.
Cardano Price Analysis. Source: TradingView
On the other hand, if profit-taking intensifies and buying pressure weakens, ADA price could drop to retest the support at $1. If this level fails to hold, confirmation of the bearish trend will take ADA price to $0.85.
The article Cardano: 3 million profit from ADA above $1 appeared first on BeInCrypto Brasil.
