The price of ADA has risen to a new level in almost a year.
As ADA continues to trend upward in price, should investors be cautious?
Cardano [ADA] has experienced an upward trend recently, with the last three days witnessing more pronounced spikes. These spikes have also influenced several of its other important metrics.
Cardano Rises To A New Level
The daily chart for Cardano showed a consistent uptrend over the past few days. Upon analysis, it became evident that its value had increased by more than 25% in the last three days alone.
As of this writing, it was trading at around $0.59, reflecting an almost 2% increase.
ADA Price Chart | Source: Coinstats
According to recent Santiment data, this price level has yet to be observed for ADA since June 2022.
#Cardano has reached a price peak of $0.633, its highest level since June, 2022. Trading volume is also at its busiest since that time, with a major increase in crowd interest. About 4% of all #crypto discussions are related to $ADA today, indicating just how much the
(cont) pic.twitter.com/q7vU0WBDh3
— Santiment (@santimentfeed) December 9, 2023
Furthermore, the Relative Strength Index (RSI) showed that ADA was approaching 90. This signifies its strongest bullish trend in a significant period while suggesting the potential for an impending price correction.
Additionally, the Moving Average Convergence Divergence (MACD) supports the strength of the ongoing bullish trend. Various other key metrics further emphasize the positivity of the current market trend.
see Also: Cardano (ADA) Price Is Waxing Strong Above The $0.40 Resistance, Is This ADA Rally?
ADA Sees Positive Trends In Key Metrics
An examination of the Cardano volume trend on Santiment showed a notable uptick. The chart indicated that the daily volume has surged to levels not witnessed in months, reaching over $2.7 billion on 9th December.
As of this writing, the volume has already exceeded $2.4 billion. This indicated a strong correlation between volume and price, a healthy trend for ADA.
Cardano Volume
Furthermore, the active addresses chart over the past 7 days showed a significant uptrend. The chart analysis showed the addition of around 88,000 active accounts between 4th December and now.
The addition brought the total number of active addresses to almost 300,000.
Additionally, Cardano’s social dominance has experienced a noteworthy increase. On 9th December, the value rose to around 3.7%, though it has since dropped to around 2.9% as of this writing.
This suggests that ADA occupies nearly 3% of the discussions within the cryptocurrency space. The surge in these metrics underscores the prevailing positive trend for ADA.
See Also: Is Solana’s Jito (JTO) Token Taking Us On A Massive Rollercoaster?
Cardano Traders Now Cautious
The Cardano funding rate on Coinglass showed a shift in trader sentiment from high optimism to a more cautious outlook. The chart revealed that the funding rate rose to around 0.04% on 9th December.
However, as of this writing, it has decreased to around 0.02%. This suggests that, although a majority of traders remain optimistic about a potential price increase, there is a notable portion exercising caution in their approach.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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