Cardano [ADA]: Latest rally causes altcoin to trade at pre-FTX collapse level

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  • ADA’s price has returned to its pre-FTX col­lapse level.
  • Coin accu­mu­la­tion has ral­lied sig­nif­i­cant­ly in the last three weeks. 

Accord­ing to data from Coin­Mar­ket­Cap, lead­ing lay­er 1 coin Car­dano [ADA] trad­ed at the $0.36 price lev­el dur­ing the intra­day trad­ing ses­sion on  21 Jan­u­ary, mark­ing the first time the coin has reached this lev­el since the fall­out of FTX.

ADA, like the rest of the gen­er­al cryp­tocur­ren­cy mar­ket, suf­fered a sig­nif­i­cant decline in val­ue fol­low­ing the unex­pect­ed col­lapse of the cryp­tocur­ren­cy exchange FTX in ear­ly Novem­ber 2022. ADA closed the 2022 trad­ing year at $0.24, hav­ing declined by 33% since FTX collapsed.


Read Cardano’s [ADA] Price Pre­dic­tion 2023–24


Can this rally be sustained?

Accord­ing to data from CoinGecko, the glob­al cryp­tocur­ren­cy mar­ket cap­i­tal­iza­tion has gone up by 21% since the begin­ning of the year. Shar­ing a sta­tis­ti­cal­ly sig­nif­i­cant pos­i­tive cor­re­la­tion with Bit­coin [BTC], whose price has risen astro­nom­i­cal­ly since the year start­ed, ADA’s val­ue has also increased by 44%.

Source: CoinGecko

At its cur­rent price, ADA was over­bought on the dai­ly chart. Momen­tum indi­ca­tors have been on an upward trend since the year began to be pegged at over­bought highs at the time of writing. 

The coin’s Rel­a­tive Strength Index (RSI) lay at 73.29, while its Mon­ey Flow Index (MFI) was spot­ted at 76.29. The grad­ual spike in these indi­ca­tors revealed that ADA had seen increased accu­mu­la­tion since the 2023 trad­ing year commenced.


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Like­wise, the asset’s On-bal­ance vol­ume (OBV) was in an uptrend at 43.517 bil­lion, hav­ing gone up by 5% since the year started. 

When an asset’s OBV increas­es, it sug­gests that buy­ing pres­sure is more sig­nif­i­cant than sell­ing pres­sure. It also means that more vol­ume is asso­ci­at­ed with ris­ing prices, indi­cat­ing that buy­ers are more aggres­sive than sell­ers and that the asset’s price is like­ly to con­tin­ue growing.

Fur­ther, increased ADA accu­mu­la­tion in the last 21 days put buy­ers in con­trol of the dai­ly mar­ket. The posi­tion of the alt’s Direc­tion­al Move­ment Index con­firmed this.

The direc­tion­al index is made up of the pos­i­tive direc­tion­al indi­ca­tor (+DI), the neg­a­tive direc­tion­al indi­ca­tor (-DI), and the aver­age direc­tion­al index (ADX). When +DI (green) is above ‑DI (red) and Aver­age Direc­tion­al Index (ADX) is ris­ing, it sug­gests that an uptrend is strong and like­ly to con­tin­ue. This obser­va­tion is sim­i­lar to the cur­rent mar­ket sit­u­a­tion with ADA.

At press time, ADA’s ADX (yel­low) was posi­tioned at 50. With the mar­ket sig­nif­i­cant­ly bull­ish in its apti­tude, an ADX read­ing above 50 indi­cat­ed a strong bull­ish trend, which might go on for a few more days before a price rever­sal is initiated. 

Source: ADA/USDT on TradingView

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