Connect with us
Active Currencies 14901
Market Cap $2,246,373,042,034.20
Bitcoin Share 50.88%
24h Market Cap Change $-0.03

Cardano: Signs of a sustained rally or is it…

2min Read

ADA’s healthy network fundamentals signal the potential for continued growth.

Cardano shows promise amidst hopes of a continued rally

Share this article

  • Around 81% of ADA’s circulating supply was in profit at press time.
  • The price increase came alongside a sharp jump in ADA’s network activity.

Cardano’s [ADA] bullish surge was halted as it suffered a minor pullback in the last 24 hours of trading.

ADA corrects but sentiment is still bullish

The eighth-largest cryptocurrency retraced 2.48% to $0.72 at press time, according to CoinMarketCap.

However, the broader timeframe evoked optimism as ADA was up 23.23% in a week, and about 38% over the month.

It was pretty common to experience such bouts of correction during an upward market.

According to AMBCrypto’s analysis of Santiment’s data, around 81% of ADA’s circulating supply was in profit at press time, up from 69% a month ago.

Increasing profitability prompted investors, especially the weak hands, to liquidate and exit the market with gains.

ADA percent supply in profit

Source: Santiment

On-chain indicators show promise

The price increase came alongside a sharp jump in ADA’s network activity. Over the last week, daily addresses soared by 28%, while daily transaction volume witnessed an increase of 12%.

Cardano network activity

Source: Santiment

Additionally, there was a significant spike in large transactions worth over $1 million, suggesting that whale investors were actively engaged with the ecosystem.

While smaller whales, those with 1,000–1 million coins, liquidated for profits, the 1 million—10 million cohort was spotted accumulating ADA during the week.

Cardano whale transactions jump

Source: Santiment

The healthy network fundamentals could pave the way for ADA’s continued growth in the future, popular on-chain researcher Ali Martinez noted in a recent X (formerly Twitter) post.

ADA’s state in the futures market

The ongoing rally prompted significant investments from ADA derivatives traders, as per AMBCrypto’s examination of Coinglass’ data.

The money locked in outstanding ADA futures contracts soared to $533 million at the time of writing, the highest since November 2021.

ADA futures Open Interest

Source: Coinglass


How much are 1,10,100 ADAs worth today?


Surprisingly, a larger share of the market continued to bet on ADA’s price decline.

The Longs/Shorts Ratio remained below 1 throughout last week, implying that the number of individuals holding short positions exceeded those holding longs.

ADA's Long/Short Ratio in derivatives market

Source: Coinglass

Share

Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.