Cardano (ADA) has recently taken the spotlight in the cryptocurrency market with its notable performance, especially considering its position among the top ten cryptocurrencies by market capitalization. Consequently, investors and market analysts closely monitor ADA’s movements and underlying metrics.
Cardano has witnessed an unusual trend where its price has surged while the number of active addresses on its network has declined, prompting scrutiny from crypto experts. Santiment, a renowned analytics firm, presented data revealing a noteworthy divergence in the Daily Active Addresses (DAA) metric, a crucial measure of blockchain user activity. Cardano’s ADA cryptocurrency currently exhibits a substantial -43.16% price-DAA divergence. Such a divergence can carry significant implications for investors, indicating a buying opportunity for those with short to mid-term investment horizons.
However, if the Cardano DAA had surpassed the price growth, it would have hinted at a selling signal. This rapid uptrend within a short period raises questions about the optimal entry time for market players. Moreover, Ali, an acclaimed crypto analyst, took to his X platform account to share his insights. He noted that Cardano’s consolidation trend closely mirrored its 2018-2020 phase, without the COVID-19 crash. If this pattern holds, ADA could break the $0.45 resistance by early December, potentially reaching $0.75 by late December.
#Cardano's current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash!
— Ali (@ali_charts) November 16, 2023
If so, $ADA could break through the $0.45 resistance around the first week of December. The upswing could send #ADA to $0.75 by late December.
Looking to trade this setup? Head… pic.twitter.com/u3KzOsZj2F
Additionally, on-chain metrics favor a bullish outlook for Cardano. IntoTheBlock’s (ITB) data revealed that the total number of addresses with a balance on Cardano is nearing its all-time high of 4.46 million. Even a minor increase in active addresses is noteworthy. The transaction volume on the network has consistently remained above $7 billion. The protocol’s Total Value Locked (TVL) has soared to $259.1 million, a height unseen since April 2022, marking an almost 400% increase year-to-date.
Analyzing the daily ADA/USDT trading pair, the recent high, low, and closing prices were 0.3783, 0.3692, and 0.3719 USDT, respectively. The volume traded in the last 24 hours stood at 33.896 million ADA. The chart’s candlestick pattern, with a predominance of green, indicates a closing price often higher than the opening, a bullish sign. At press time, the price of ADA was $0.374912.
The technical indicators add to this bullish narrative. The Know Sure Thing (KST) oscillator is above the signal line, suggesting continued bullish momentum. The Relative Strength Index (RSI) is at 75.78, indicating ADA might be overbought. However, this is tempered by higher overbought thresholds at 66.00 and 77.00.
These indicators collectively suggest that ADA is bullish, albeit approaching overbought conditions. Its on-chain metrics and technical indicators show robust growth and investor interest. Cardano seems well-positioned for further gains as the crypto community watches, making it an intriguing asset for potential investors.
