ADA breaks $1 for first time since 2022, holders see record gains
Cardano's Ada hits $1.09, sees 24% surge and 131% volume spike
ADA, the native cryptocurrency of the Cardano blockchain, has broken through the $1 mark for the first time in two years, trading at $1.09 as of this writing.
This milestone, last achieved in April 2022, comes amid a 24% price surge over the past 24 hours, accompanied by a 131% spike in trading volume. Heightened buying pressure suggests the rally may continue, reports BeInCrypto.
Profitability and Long-Term Holder Activity
Cardano’s rise above $1 has significantly improved the profitability of its holders. Data from IntoTheBlock reveals that 71% of ADA holders—approximately 3.15 million addresses—are now "in the money," meaning the current market price exceeds the average cost at which they acquired their tokens. Conversely, 16% of addresses, representing 715,230 holders, are “out of the money,” having purchased their coins at prices above $1.40.
Long-term holders (LTHs) appear to be capitalizing on the rally to secure gains. This is evident in the spike in ADA’s age-consumed metric, which surged to a monthly high of 86.91 billion on November 22, as tracked by Santiment. This metric measures the movement of long-held tokens, and such spikes often indicate shifts in market trends. Increased trading activity from LTHs could signal further bullish momentum as new buyers enter the market.
Analyst Kharitonov stated: ADA is an exellent option for the mid-term.
Technical Indicators and Market Outlook
On the technical side, ADA’s Aroon Up Line has reached 100%, signaling a strong upward trend. This indicator, which measures trend strength and direction, suggests continued bullish momentum. If demand persists, ADA’s price could rally further to $1.24, a level last reached in March 2022.
However, there are potential risks. If profit-taking intensifies and buying pressure weakens, ADA could retest support at $1. A failure to hold this level might trigger a decline, with prices potentially dropping to $0.85.
Conclusion
ADA’s recent performance highlights renewed investor interest in Cardano and its potential for further price gains. While bullish momentum remains strong, market participants should watch for potential profit-taking activity, which could influence the coin's short-term trajectory. For now, Cardano’s rally underscores its resilience and the growing confidence among its holders.
Recently we wrote, that after eight months of Ethereum price bearish movement, Ether bulls have been active as evident in its recent price surge and aggressive buying activity, raising hopes of a sustained rally.
