The recent surge in Cardano (ADA) price this week has given relief to crypto investors. This resulted in most ADA holders (over 50%) running into profitable positions, according to data from IntoTheBlock.
Following its earlier pattern, Cardano strongly recovered after its founder Hoskinson said he could be helping build the US crypto policy under the Trump administration. This increased the profitability of the ADA holders as Cardano's trading volume went over $3.6 billion on November 12 and its value rose to $0.599. However, ADA soon experienced a 4.09% dip but its market cap remained at $20.98 billion.
The derivatives market of Cardano slowed down with trading volume declining 25.45% and open interest going down by 10.95%. The options market also witnessed a 92.94% decrease in trading volume. This shows that the investors' interest in ADA has declined although there is optimism amongst Cardano traders on crypto exchanges like OKX and Binance.
The ADA long/short ratios on crypto exchanges went past 2.0 which shows rising bullish sentiments in large investors like crypto whales. However, $11.19 million Cardano long positions have been liquidated in the 24 hours leading up to November 12, indicating that price volatility is likely.
Last week, Cardano institutional investors made $34.26 billion in high-value transactions with large holders showing 29% of the ADA supply. Additionally, 73% of crypto investors hold long positions for ADA which indicates a strong confidence in the token.
Cardano’s correlation with Bitcoin is 0.81 which is in line with the bullish trend in the crypto market. However, the Telegram membership of the digital asset declined by 0.24% which suggests a pullback from retail investors.
ADA has formed a candlestick pattern on the price chart with consecutive green candles and higher highs indicating an upward trend. The trading volume of Cardano surged showing that investors are participating more. 18.86 million ADA tokens have been traded as token rallied close to $0.594.
The Relative Strength Index (RSI) of Cardano stands at 85.23 which points towards overbought conditions, meaning a short consolidation or pullback phase is likely. The MACD indicate a bullish run but its steep ascent speaks of overextension chances.
Cardano is likely to have a mixed price prediction with an average trading value of $0.439 in the last two months of 2024. The coin is expected to trade between $0.328 and $0.549 in December.
The ADA outlook is cautiously optimistic as crypto whale activity surges and institutional investment rises. Despite the chances of short-term volatility, there is considerable potential for long-term Cardano growth as market confidence increases.
As of November 13 afternoon, Cardano is down 16.25% to trade at $0.533 while trading volume has decreased 16.78% to touch $2.49 billion and market cap is at $18.67 billion, a 17% decline.