- Cardano (ADA) price soared by almost 15% daily, reaching $1.17 with a market cap surpassing $40 billion.
- Three bullish factors suggest a further rally: Net Network Growth, Concentration (whale and investor activity), and Large Transactions on the network increased.
- 73% of ADA investors are currently in profit, a significant recovery from August when the majority were underwater.
Cardano (ADA) has witnessed a significant surge of 15% in a single day. This recent performance makes it the best-performing cryptocurrency among the top 10 on December 12. This article will delve into the reasons behind this impressive rally and the indicators suggesting further growth.
Cardano’s Remarkable Rise
Recently, the cryptocurrency market has observed a noticeable recovery, with many leading digital currencies charting substantial gains. Bitcoin (BTC), for instance, has once again breached the 100,000 dollar mark, while Ethereum (ETH) is inching towards the 4K level. However, Cardano’s ADA stands out with a nearly 15% increase in a single day. The valuation even touched 1.17 dollars at one point before settling at its current value around 1.14 dollars, as per CoinGecko’s data. ADA’s market capitalization soared past 40 billion dollars, cementing its place among the top ten largest cryptocurrencies.
Bullish Indicators Supporting ADA’s Growth
ADA’s recent resurgence is in sync with three bullish indicators. The first one is Net Network Growth, which has risen by 0.26% daily. This momentum signal reflects the true growth of the ADA network. Next, is the Concentration metric, which measures daily changes in the holding positions of whales (holding over 1% of the circulating supply) and investors (owning between 0.01% and 1%). This metric has also climbed by 0.26%, indicating a bullish trend. Lastly, Large Transactions, which account for transactions greater than 100,000 dollars, have witnessed a rise of 0.52%, suggesting heightened network activity.
ADA Investors Enjoying Profitable Returns
Contrasting with the bullish elements, one indicator is in bearish territory – the InTheMoney indicator, which represents the change in the number of ADA investors currently realizing profits. Currently, 73% of investors are in the green, 16% are underwater, and 11% are at break-even. Despite a slight dip, the proportion of profitable investors remains significantly higher than what was seen at the start of August. At that time, due to ADA’s crash below 0.30 dollars, nearly no ADA holders were making profits, with 87.6% in the red and around 12% at break-even.
Conclusion:
The present performance of Cardano paints a promising picture for the cryptocurrency. With a majority of its investors now realizing profits and with the appearance of strong bullish indicators, ADA appears to be on a robust growth trajectory. However, as with all investments, it’s crucial to conduct thorough research and exercise caution.
