- ADA’s trading volume soared after the token price experienced a huge increase.
- The majority of holders didn’t make money despite a price surge.
Recently, interest has risen in Cardano’s [ADA] token, ADA. According to data from recent years, the 24-hour volume of ADA trading has exceeded $550 Million.
Source: X
It’s a long way to go
Price movement has also increased in tandem with the increase in volume. In the last 24 hours, the price of ADA surged by 4.43% and was trading at $0.4498 at the time of writing.
Cardano is still in a good position despite recent increases.
Since March 15th, ADA has been on a downward trend, with multiple lows and highs.
The ADA failed to reverse this trend over the past several months.
To reverse this tendency, ADA might have to exceed the $0.5761 mark and reach it. ADA is not yet at this level.
Despite ADA’s long-term challenges, the indicators of ADA paint a very positive picture.
CMF (Chaikin money flow) has risen to 0.6, indicating that ADA’s cash inflow has increased.
RSI for ADA also increased, indicating a bullish surge for the token.
Although these factors may give ADA owners some hope, it’s important to remember that a significant increase in the price is needed to reverse the trend.
Source: Trading view
Activity On-Chain
The on-chain data showed that ADA’s trading velocity had increased significantly.
It could indicate that the number of ADA transactions has increased. This is a sign positive for altcoin. MVRV ratio also remained at a negative value despite the increase in price.
You can read more about it here Cardano’s [ADA] Price Prediction 2024-25
The MVRV ratio was negative, which meant that many holders had not been profitable as of the date of publication. It gives no incentive to the holders and lowers pressure for ADA.
Price of ADA may continue to increase until the holders are profitable. A correction may occur when the holders can finally sell their holdings and make some profit.
Santiment
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Source: ambcrypto.com
