Can Cardano Bulls Push ADA Price to $2?
For some investors, Cardano’s recent dip below $1 might seem catastrophic. However, ADA bulls appear unfazed by the slight decline, as on-chain data suggests they may be gearing up for another sustained uptrend.
Here is an in-depth analysis explaining how things could unfold for the altcoin.
Cardano Investors Stick to Their Bullish ConvictionAs of this writing, Cardano’s price is $0.98 after initially rising to $1.15 recently. This slight decrease could be linked to the broader market fall yesterday, which saw Bitcoin (BTC) drop below $95,000.
However, data from Coinglass reveals that the ADA Spot Inflow/Outflow stands at -$40 million as of this writing, down from -$63 million on Monday, November 25. This indicates that Cardano bulls have withdrawn about $100 million from exchanges in just two days
Typically, when holders pull tokens from exchanges, it suggests they’re not planning to sell, which can create upward price pressure. Conversely, an increase in inflows would indicate that holders are willing to sell, potentially leading to a price decline.
Therefore, if the exchange outflow continues to rise, then Cardano’s price could rebound in the short term. Another indicator predicting such a move is the Mean Dollar Invested Age (MDIA).
The MDIA is the average age of all tokens on a blockchain weighted by the average purchase price. When it increases, it means that most tokens have stayed stagnant. Thus, this makes it challenging for prices to move significantly.
However, for Cardano, the 90-day MDIA has significantly declined, suggesting that trading activity of previously dormant coins has increased. If sustained, ADA might find it relatively easy to trade higher as long as buying pressure increases.
#CardanoADA #AltcoinSeason #BTC #cryptomarket #CryptoNews
