Cardano: Signs of a sustained rally or is it…
- Around 81% of ADA’s circulating supply was in profit at press time.
- The price increase came alongside a sharp jump in ADA’s network activity.
Cardano’s [ADA] bullish surge was halted as it suffered a minor pullback in the last 24 hours of trading.
ADA corrects but sentiment is still bullish
The eighth-largest cryptocurrency retraced 2.48% to $0.72 at press time, according to CoinMarketCap.
However, the broader timeframe evoked optimism as ADA was up 23.23% in a week, and about 38% over the month.
It was pretty common to experience such bouts of correction during an upward market.
According to AMBCrypto’s analysis of Santiment’s data, around 81% of ADA’s circulating supply was in profit at press time, up from 69% a month ago.
Increasing profitability prompted investors, especially the weak hands, to liquidate and exit the market with gains.
Source: Santiment
On-chain indicators show promise
The price increase came alongside a sharp jump in ADA’s network activity. Over the last week, daily addresses soared by 28%, while daily transaction volume witnessed an increase of 12%.
Source: Santiment
Additionally, there was a significant spike in large transactions worth over $1 million, suggesting that whale investors were actively engaged with the ecosystem.
While smaller whales, those with 1,000–1 million coins, liquidated for profits, the 1 million—10 million cohort was spotted accumulating ADA during the week.
Source: Santiment
The healthy network fundamentals could pave the way for ADA’s continued growth in the future, popular on-chain researcher Ali Martinez noted in a recent X (formerly Twitter) post.
ADA’s state in the futures market
The ongoing rally prompted significant investments from ADA derivatives traders, as per AMBCrypto’s examination of Coinglass’ data.
The money locked in outstanding ADA futures contracts soared to $533 million at the time of writing, the highest since November 2021.
Source: Coinglass
How much are 1,10,100 ADAs worth today?
Surprisingly, a larger share of the market continued to bet on ADA’s price decline.
The Longs/Shorts Ratio remained below 1 throughout last week, implying that the number of individuals holding short positions exceeded those holding longs.
Source: Coinglass
