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- Several Cardano metrics point to an impending bullish run in price.
- Cardano (ADA) is worth keeping an eye on for prospective long-term HODLers.
Cardano’s (ADA) recent bullish signals in on-chain metrics, which coincides with the ongoing Cardano Summit 2023 in Dubai, have ignited the interest of both investors and enthusiasts, raising the question of whether it’s time to buy the cryptocurrency.
Cardano’s Bullish On-Chain Metrics
The on-chain data, provided by analytics firm Santiment, highlights a surge in ADA address activities and large transactions, which have not been witnessed in over three months. Over the past two weeks, ADA has surged by a remarkable 36%, and over the last day, it posted an impressive 9% increase in its market valuation now pegged at $0.3183.
Additionally, Cardano’s holders’ composition is indicative of a strong long-term investor base. Approximately 61% of ADA holders have been holding their tokens for over a year, according to on-chain data provided by IntoTheBlock.
This signals confidence in the project’s long-term potential. Furthermore, Cardano’s large holder concentration is currently at 29%, indicating that a significant portion of the supply is held by relatively fewer addresses.
However, it’s worth noting that despite these positive indicators, the majority of ADA holders (74%) are currently “out of the money” at current prices, suggesting that many bought ADA at higher price levels. This situation could potentially lead to profit-taking if prices continue to rise.
Transaction volume is another key metric showing strength, with over $22.56 billion worth of transactions exceeding $100,000 recorded in the last 7 days. This level of transaction activity signifies substantial interest and participation in the ADA network.
The positive on-chain metrics align with the ongoing Cardano Summit 2023 taking place in Dubai. This event is poised to be a potential catalyst for further positive sentiment and could have a positive impact on ADA’s price.
The summit is set to feature over 100 speakers from the blockchain industry, two stages, an exhibition space, and multiple masterclasses, making it a significant gathering of blockchain enthusiasts and developers. The topics to be covered at the summit include operational resilience, blockchain infrastructure, regulatory issues, and increasing blockchain adoption.
Is it Time to Buy ADA?
Currently, ADA is trading at $0.318, with an intraday jump of 2.55%. The massive 40% surge in trading volume in recent days also indicates short-term optimism, complementing the technical indicators that paint a more positive picture.
The Moving Average Convergence Divergence (MACD) indicator shows a rising trend in both the MACD and signal lines, with growing histograms. Additionally, the rising 50-day EMA is approaching the 200-day EMA, increasing the possibility of a “golden crossover.”
If ADA’s price can break through the $0.325 resistance level, it may trigger a breakout rally that could take it to $0.40. On the other hand, a sharp reversal from $0.325 could lead to a retest of the $0.30 mark.
While short-term volatility may persist, the long-term outlook for Cardano appears promising, and investors and enthusiasts should keep a close eye on the market dynamics.
