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The ADA token, the native coin of the Cardano blockchain, has reached a significant price milestone. It surpassed $1 for the first time in the past two years. As of now, the altcoin is trading at $1.09, a price not seen since April 2022.
Over the past 24 hours, ADA’s price has skyrocketed 24%, and its trading volume has increased 131% during the same period. With increased buying pressure, the upward momentum of the Cardano coin is expected to continue.
Cardano Holders See Profits
The fact that Cardano surpassed the threshold of 1 USD has brought profits to many Holders. According to IntoTheBlock’s Global In/Out of the Money index, 3.15 million addresses, accounting for 71% of all ADA holders, are “profitable”.
An address is considered “profitable” if the current market price of the assets it holds is higher than the average cost of purchasing those Tokens. This means that Holder will make a profit if they sell their existing assets at the current market price.
In contrast, 715,230 addresses, accounting for 16% of the total number of ADA holders, are “losing money”. These addresses will suffer losses if sold at current prices. According to IntoTheBlock data, this group of investors bought the coin when ADA was selling above $1.40.
Notably, with many addresses currently holding unrealized gains, ADA Long Holders (LTHs) are restructuring their portfolios, possibly to preserve profits. This activity is reflected in the ADA “age of consumption” index, which, according to Santiment data, climbed to a monthly high of 86.91 billion on November 22, when the uptrend began.
This spike is notable because long-term holders rarely move coins. When they do, it usually suggests a change in market trend. Therefore, as in the case of ADA, if the surge is accompanied by increased trading volume and positive price action, it suggests that long-term holders are taking profits. This could prompt further price increases as new buyers enter the market.
ADA Price Prediction: Strong Uptrend
On the daily chart, ADA’s Aroon Up line reached 100%. The Aroon indicator measures the strength and direction of a trend. When the Aroon Up line reaches 100%, this indicates a strong uptrend, suggesting a recent top and the possibility of continued upward momentum.
If this holds and new demand continues to flow into the market, Cardano’s price momentum will continue towards $1.24, the price peak it last reached in March 2022.
On the other hand, if profit-taking increases and buying pressure weakens, ADA price could drop to retest support at $1. If this level fails to hold, the downtrend will be confirmed, and the price of ADA will fall to $0.85.
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