Should Cardano investors be cautious after ADA’s recent moves?

Journalist

Posted: December 10, 2023

• ADA’s volume has risen to one of its highest points in almost a year.
• ADA has continued to trend upward in price. 

Cardano [ADA] has experienced an upward trend recently, with the last three days witnessing more pronounced spikes. These spikes have also influenced several of its other important metrics.

Cardano rises to a new level

The daily chart for Cardano showed a consistent uptrend over the past few days. Upon analysis, it became evident that its value had increased by more than 25% in the last three days alone.

As of this writing, it was trading at around $0.59, reflecting an almost 2% increase. According to recent Santiment data, this price level has yet to be observed for ADA since June 2022.

Source: TradingView

Furthermore, the Relative Strength Index (RSI) showed that ADA was approaching 90. This signifies its strongest bullish trend in a significant period while suggesting the potential for an impending price correction.

Additionally, the Moving Average Convergence Divergence (MACD) supports the strength of the ongoing bullish trend. Various other key metrics further emphasize the positivity of the current market trend.

ADA sees positive trends in key metrics

An examination of the Cardano volume trend on Santiment showed a notable uptick. The chart indicated that the daily volume has surged to levels not witnessed in months, reaching over $2.7 billion on 9th December.

As of this writing, the volume has already exceeded $2.4 billion. This indicated a strong correlation between volume and price, a healthy trend for ADA.

Source: Santiment

Furthermore, the active addresses chart over the past 7 days showed a significant uptrend. The chart analysis showed the addition of around 88,000 active accounts between 4th December and now.

The addition brought the total number of active addresses to almost 300,000.

Source: Santiment

Additionally, Cardano’s social dominance has experienced a noteworthy increase. On 9th December, the value rose to around 3.7%, though it has since dropped to around 2.9% as of this writing.

This suggests that ADA occupies nearly 3% of the discussions within the cryptocurrency space. The surge in these metrics underscores the prevailing positive trend for ADA.

Read Cardano (ADA) Price Prediction 2023-24

Cardano traders now cautious

The Cardano funding rate on Coinglass showed a shift in trader sentiment from high optimism to a more cautious outlook. The chart revealed that the funding rate rose to around 0.04% on 9th December.

However, as of this writing, it has decreased to around 0.02%. This suggests that, although a majority of traders remain optimistic about a potential price increase, there is a notable portion exercising caution in their approach.