Cardano (ADA), one of the favored altcoins in the cryptocurrency market, has recently hit a new milestone, showing signs of an upward trajectory.
While market leaders Bitcoin and Ethereum maintain strong positions above $40,000 and $2,200, respectively, the upward wave is also influencing leading altcoins. With an overall positive sentiment prevailing in the crypto market, the price of Cardano has successfully surpassed a significant resistance level. Simultaneously, various on-chain metrics are signaling a growing optimism surrounding Cardano.
In the midst of Bitcoin and Ethereum’s resilience, Cardano’s breakthrough is capturing the attention of investors and enthusiasts alike. The successful breach of a key resistance point is seen as a positive development for Cardano, suggesting potential further gains in the near future.
As the broader cryptocurrency market experiences a bullish phase, Cardano’s performance reflects the general optimism and interest in altcoins. The increased positive sentiment and on-chain metrics surrounding Cardano contribute to a growing sense of optimism among investors, who are keenly observing the altcoin’s trajectory.
In conclusion, Cardano’s recent achievement of surpassing a crucial resistance level indicates a notable development in its market performance. As the cryptocurrency market continues to exhibit positive trends, Cardano’s upward momentum positions it as a noteworthy player in the evolving landscape of digital assets. Investors and observers are likely to closely monitor Cardano’s movements, considering the optimistic signals and potential opportunities it presents within the crypto space.
Cardano’s profitable addresses set a new record
According to Coinglass data, Cardano experienced a significant liquidation today as a majority of short positions had to be closed, resulting in a liquidation of $1 million. Particularly, after the price of the popular altcoin reached $0.415, there was a wave of liquidations by bulls, totaling over $750,000.
Data obtained from IntoTheBlock indicates that Cardano addresses in profit reached a new milestone following the upward rally triggered by Bitcoin reaching $40,000. These profitable addresses have now reached the highest level in the past two years, standing at 38.5%. This implies that nearly 1.76 million addresses are currently in profit. The increase in profitable addresses signals a high long-term potential for the asset, consequently boosting the HODL sentiment among investors. Currently, 55.2% of Cardano addresses are in loss, indicating approximately 2.46 million addresses experiencing losses. Meanwhile, 5.19% of addresses (230,000 addresses) neither gain nor lose.
Furthermore, on-chain data reveals a notable increase in the volume of large-scale transactions involving ADA tokens, especially those exceeding $100,000. This trend indicates a growing interest in ADA tokens among institutional investors and high-net-worth individuals. Such activity is often an early indicator of sudden price increases.
For Cardano, the recent surge in activity among these large investors aligns with the observed increase in ADA prices across various time frames. Despite Cardano’s open positions reaching a six-month high of $190 million, the current market sentiment is trending downward as investors are taking profits.
The ratio of long to short positions has witnessed a significant decrease, reaching 0.7004 in the last few hours. Currently, more than 58% of shareholders anticipate ADA’s price to drop to $0.4, while only 42% remain hopeful for a price increase. This dynamic reflects the evolving sentiment in the Cardano market, shaped by recent liquidations and profit-taking actions among traders.
What’s next for the ADA price?
The popular altcoin has found robust support at the $0.39 level, intersecting with the 20-day Exponential Moving Average (EMA). However, there appears to be a noticeable struggle to initiate a strong uptrend above this level, indicating a diminishing demand for higher prices. ADA recorded a modest 2.3% increase in the last 24 hours, trading around $0.3992 at the time of writing.
Currently, the price of the favored altcoin remains within a narrow range between the $0.37 support and the $0.41 resistance. Technical indicators, such as the Relative Strength Index (RSI) staying above the 58 mark and the 20-day EMA showing a slight upward trend, suggest a mild advantage for the bulls. If buyers successfully surpass the resistance at $0.41, it could trigger an increase in bullish momentum. Following this potential upward movement, the price would initially target the $0.42 level, with the next objective set at $0.463.
However, the cryptocurrency market is inherently volatile, and sudden changes can occur at any moment, presenting a reality for ADA as well. A drop below the 20-day EMA level and the upward trend line could signal a return of bears to the market. This scenario could lead to a price decline to $0.34. Therefore, investors looking to minimize risk may consider setting a stop-loss at this level. It’s essential to stay vigilant in the dynamic crypto landscape, adapting strategies to navigate potential market fluctuations.
