- Cardano’s (ADA) price has surged past $1 for the first time in two years, with 71% of holders now “in the money,” reaping profits as the coin’s value rose by 24% in just 24 hours.
- While the bullish trend could continue toward $1.24, intensified profit-taking may lead to a price retracement to $1 or even lower to $0.85.
Cardano (ADA), the native cryptocurrency of the Cardano blockchain, has experienced a remarkable resurgence, surpassing the $1 mark for the first time in two years. This breakthrough has stirred up a wave of excitement among its holders, especially as ADA’s price surged by 24% within just 24 hours, trading at $1.09 as of the latest reports. The rapid increase in trading volume, up by a staggering 131%, signals that ADA’s bullish momentum might be far from over.
A New Era of Profit for Cardano Holders
As ADA crosses the $1 threshold, many of its long-time holders are now in profit. According to data from IntoTheBlock, a notable 71% of ADA holders—around 3.15 million addresses—are currently “in the money.” This means that these holders bought ADA at a price lower than $1, allowing them to see unrealized profits as the token continues to climb. In stark contrast, about 16% of holders, approximately 715,000 addresses, are “out of the money,” meaning their ADA purchases were made when the price was above $1.40.
The influx of profit-seeking behavior has caused long-term holders to reposition, shifting their ADA holdings to secure gains. This repositioning is evident from the increase in Cardano’s “age-consumed” metric, which tracks the movement of older coins. A spike in this metric is usually a sign that long-term holders are starting to sell, indicating that they may anticipate further price movements or simply want to capitalize on current gains.
Cardano’s Strong Bullish Trend
The price action is further supported by technical indicators, with the Aroon Up line hitting 100% on ADA’s daily chart. The Aroon indicator measures the strength of a trend, and a reading of 100% suggests a strong bullish momentum. This points to the possibility of ADA reaching $1.24, a price level it last touched in March 2022, should the buying pressure continue.
However, the ongoing price rally comes with a word of caution. As more holders lock in profits, there is the potential for an increase in selling pressure. Should this occur, ADA might retrace to test its $1 support level. If that level fails to hold, the price could dip further to as low as $0.85, confirming a potential downtrend.
Looking Ahead: Will ADA’s Momentum Continue?
In conclusion, Cardano’s recent surge is a significant event for the cryptocurrency and its holders. While many are reaping the rewards of their long-term investments, market watchers will be keeping a close eye on ADA’s price action in the coming days. If ADA maintains its bullish trend, it could pave the way for even greater gains. But if profit-taking intensifies, ADA might face some short-term corrections. Either way, the next few weeks will be crucial in determining whether Cardano can maintain its recent momentum.
