Cardano (ADA) Up 10%: Buyers Return to Power
In the past 24 hours, Cardano (ADA) price has surged 10%, hitting a two-month peak of $0.77.
This increase is in line with a wave of optimism in the overall crypto market, sparking enthusiasm among traders and investors.
On-Chain Data: Most ADA Holders Make Profits
According to Santiment data, around 74.14% of the total circulating supply of ADA, equivalent to 26.91 billion tokens, is now in the profit zone.
This means that the majority of ADA holders hold assets worth more than their purchase price, which often triggers further accumulation and strengthens the uptrend.
Derivatives Market Reflects Bullish Sentiment
ADA’s funding rate in the derivatives market remains positive at 0.0099%.
This figure shows that traders with long positions are paying short traders, indicating strong expectations of price increases.
This bullish sentiment dominates the ADA derivatives market.
Beware of Potential Selling Action
Although technical indicators show a positive trend, there is a risk of selling pressure from investors looking to take profits.
If selling increases, the price of ADA has the potential to correct towards the support level of around US$0.76. However, as long as this support is strong, ADA’s short-term prospects remain bright.
Conclusion
With the majority of ADA holders in a profitable position and optimistic market sentiment, Cardano is showing solid signs of recovery.
Even so, investors need to be aware of the possibility of a short-term correction due to profit-taking.
