- ADA trading volume soared as the token’s price witnessed a massive surge.
- Despite a price increase, most holders were not profitable.
In recent days there has been a revival of interest in Cardanos [ADA] sign, ADA. According to recent data, ADA’s 24-hour trading volume surpassed $550 million.
Source:
A long way to go
Combined with an increase in volume, there was also growth in terms of price movements. In the last 24 hours, ADA’s price rose 4.43% and was trading at $0.4498 at the time of writing.
Despite the recent price increase, the overall situation for Cardano remained bleak.
Since March 15, ADA’s price started its downward trajectory, showing multiple lower lows and lower highs along the way.
This was indicative of a bearish trend that ADA has been unable to reverse in recent months.
To reverse this trend, ADA may need to test and surpass the $0.5761 level. However, at the time of writing, ADA was nowhere near this level.
Although ADA still had a long way to go, the indicators for ADA painted a positive picture.
The CMF (Chaikin Money Flow) for ADA had increased to 0.6, showing that the flow of money into ADA had increased dramatically.
Moreover, the RSI (Relative Strength Index) for ADA had also grown, indicating a strong increase in bullish momentum for the token.
While these factors may give ADA holders some optimism, it is important to consider that a huge price increase would be necessary before a trend reversal occurs.
Source: trading view
Activity in the chain
Turning to the on-chain data, it showed that the speed at which ADA traded had increased significantly.
This meant that the frequency with which ADA was traded had increased dramatically, which could be a positive sign for the altcoin. Moreover, the MVRV ratio remained negative despite the price increase.
Read Cardanos [ADA] Price forecast 2024-25
A negative MVRV ratio indicated that most holders were not profitable at the time of writing. This gives holders no incentives to sell and reduces selling pressure on the ADA token.
The price of ADA can continue to rise until its holders are profitable. When holders reach a stage where they can sell their holdings at some profit, perhaps a correction can be expected.
Source: Santiment