After a strong rally, the ascent of Cardano (ADA) experienced a brief halt due to a recent market retracement. Despite this setback, overall market sentiment around ADA remains positive. The cryptocurrency has seen a significant 23.23% rise over the past week and a 38% increase over the past month, fueling a bullish outlook among investors for the long-term trajectory.
Market Adjustments Following Profitable Period
The cryptocurrency market is known for its volatility, and ADA’s recent adjustment follows a period of substantial gains. Data from the analytics firm Santiment shows that 81% of ADA’s circulating supply was profitable at the time of reporting, a noticeable increase from 69% a month earlier. This profitability prompted certain investors to cash out, stabilizing the market as these “weak hands” exited.
ADA’s price surge has been accompanied by a notable uptick in network activity, signaling heightened interest and engagement within the Cardano ecosystem. Over the last week, daily active addresses have climbed by 28%, with a 12% increase in daily transaction volume. Furthermore, a spike in large transactions over $1 million suggests that heavyweight investors, or ‘whales,’ are playing a significant role in the network’s dynamics.
Analysts Observe Strategic Moves by ADA Whales
While smaller-scale whales have been taking profits, larger ADA holders—those with 1 to 10 million tokens—are reportedly on an accumulation spree. Renowned crypto analyst Ali Martinez has pointed out that ADA’s solid network fundamentals are indicative of potential sustained growth. Martinez’s insights are supplemented by Coinglass data, which reveals ADA derivatives traders are pouring into futures contracts, pushing the locked-in funds to a peak not seen since November 2021.
As ADA’s price progression tempts speculators, a considerable segment of the market is hedging against an uptrend. The Long/Short ratio, which remained below 1 over the past week, indicates a prevalence of short positions over long positions, depicting a cautious stance among traders regarding ADA’s immediate price future.