Bitcoin’s march toward $100,000 has sparked a wave of excitement in the cryptocurrency market. The top digital currency briefly crossed $99,000 on Friday, creating ripples in the altcoin sector. Among the standout performers is Cardano’s native cryptocurrency, ADA, which has seen a significant price surge. Cardano’s ADA leaps to a 2.5-year high of 90 cents, signaling a strong bullish trend in the cryptocurrency market.
Cardano’s ADA climbed 10% in the last 24 hours, reaching $0.90 on major exchanges like Coinbase. This marks the highest level since May 2022. The token’s price has increased by 22% this week and by 152% in November, pushing its market capitalization to $30.85 billion. This places ADA as the 10th-largest cryptocurrency globally.
In comparison, the broader crypto market, as measured by the CoinDesk 20 Index (CD20), grew 14% this week and 58% for the month.
Whales Fuel ADA’s Rally
Whales i.e. large investors holding over $10 million worth of ADA have played a major role in the rally. Analytics firm IntoTheBlock reports a 300% surge in large ADA transactions in just two weeks, signaling strong institutional interest. Whale holdings now exceed $12 billion, according to Tagus Capital.
The rise in whale activity coincides with Cardano’s founder, Charles Hoskinson, hinting at potential collaborations with U.S. policymakers, further boosting sentiment.
On-Chain Metrics Show Strong Network Activity
Investors have reacted positively as Cardano’s ADA leaps to a 2.5-year high of 90 cents. Cardano’s weekly active addresses have exceeded 350,000 for the first time since June 2023. This increase reflects growing network usage, not just whale-driven speculation. ADA’s Market Value to Realized Value (MVRV) ratio has climbed above 75%, a level last seen during the 2021 bull market.
The high MVRV ratio suggests investors are holding substantial profits, with realized profits reaching $200 million in the past two days. However, most holders seem optimistic, choosing to retain their tokens.
Futures Open Interest Surges
ADA’s futures open interest hit $725.83 million on Thursday, its highest in three years. This rise, coupled with price growth, indicates growing confidence in the token’s bullish trend.
Spot exchange volumes and net flows also suggest strong trading activity, supporting further price increases.
ADA has smashed past its April 2022 resistance level of $0.908, paving the way for potential gains toward $1.26. However, with the Relative Strength Index (RSI) at an overbought level of 80, a short-term correction remains possible.
The Awesome Oscillator, however, points to rising bullish momentum, adding to optimism. A daily close below $0.683 would invalidate the bullish outlook.
Speculation Boosted by U.S. Policy Prospects
Hoskinson’s announcement of plans to engage with U.S. lawmakers under the incoming Trump administration has heightened speculative activity around ADA. He revealed intentions to work closely with policymakers to shape crypto-friendly regulations, further energizing investor interest.
Retail traders are actively participating, with ADA’s Relative Strength Index remaining overbought for nearly two weeks. Despite this, buying activity continues to grow, indicating sustained optimism.
Short sellers betting against ADA have faced liquidations totaling $8.27 million, adding to buying pressure. The token’s derivatives market also shows increased activity, with open interest climbing to $772 million.
Amid rising market optimism, Cardano’s ADA leaps to a 2.5-year high of 90 cents, surpassing significant resistance levels. Cardano’s ADA has emerged as a top performer, surging over 120% in November. The rally, driven by whales, retail interest, and favorable market conditions, suggests the potential for further gains. However, overbought metrics hint at possible corrections, making the market’s next moves crucial to watch.
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