Altcoin
Cardano: February could be a profitable month for ADA holders, here’s why
- Cardano’s ambitious stablecoin Djed is to be launched this week.
- ADA anticipated a bullish surge but large whales could spoil the party.
The launch of the much-anticipated over-collateralized stablecoin Djed on the Cardano [ADA] network is slated to happen this week.
Just days before the launch, COTI, the firm developing Djed in collaboration with Input Output HK (IOHK), shared some vital information regarding the economical design and mechanism of the same.
We are happy to share that Djed 1.1.1 will include delegation rewards for $SHEN holders starting from day one! In this update we explained Djed’s economics and delegation process.
Read all about it: https://t.co/Q9rNRCrxL4$DJED $COTI @Cardano pic.twitter.com/11LRFldr11
— COTI (@COTInetwork) January 29, 2023
Apart from Djed, the Cardano ecosystem is also gearing up for the launch of Liquid Finance, a decentralized interest rate protocol for lending on Cardano, this week.
At the time of writing, ADA was up 1,63% from the previous day with a slight increase in its daily trading volume as well, data from CoinMarketCap revealed.
How much are 1,10,100 ADAs worth today?
Social activity was up but….
The cumulative effect of these soon-to-be-launched products generated considerable social buzz for Cardano. According to Lunar Crush, the number of social mentions hit a weekly high of 2.21k on 29 January.
ADA’s on-chain activity echoed the positive sentiment. The development activity has been on an upward trajectory for the most part of January, indicating that upgrades and enhancements have a higher chance of meeting their deadlines.
The daily active addresses dipped after spiking on the launch of Djed in February. Another update on the launch could very well increase the activity.
The network profitability was high as disclosed by the positive value of the MVRV ratio. But the falling MVRV Long/Short Difference indicated that short-term traders were in profit and hence selling pressure won’t be immense.
Source: Santiment
However, data by Santiment highlighted that large whales with holdings of 100,000 to 1,000,000 have started to dump ADA tokens. This could exert considerable selling pressure on the coin.
Since #Cardano surpassed the $0.38 level on Jan. 21, roughly 31 addresses holding 100,000 to 1,000,000 $ADA have sold or redistributed their #ADA tokens, shows on-chain data from @santimentfeed. pic.twitter.com/rzuM3rai8Z
— Ali (@ali_charts) January 29, 2023
‘ADA’mant bullish surge
ADA holders couldn’t have asked for a better start to 2023 after the bloodbath of 2022. The bullish rally undertaken in the last month saw gains of over 60% for ADA.
The altcoin also added about $5 billion to its market cap in the same time period. Of late, the price has made higher highs and higher lows which signaled an uptrend.
The Relative Strength Index (RSI) moved just below the overbought territory, signaling strong buying activity. The On Balance Volume (OBV) too made higher-highs lending credence to the strong demand of ADA.
Source: TradingView ADA/USD
Read Cardano’s [ADA] Price Prediction 2023-24
With a key network update coming on 14 February which is expected to make big changes to Cardano’s smart contracts, February could be just the start of an ADA onslaught.
