After a brutal 2022 that saw the price fall by over 66%, Cardano has rallied this year and is now up 45%. But it’s not just the price action that makes the current outlook so favorable – onchain analysis reveals significant upside potential.
Whale activity has been rising since December, with an increasing number of large transactions. This indicates big investors are starting to accumulate ADA coins and is a bullish sign for the future price.
Another encouraging sign is that traders have largely abandoned their short positions in Cardano, meaning they’ve stopped betting against the cryptocurrency. This reduces the risk of a massive sell-off in case of negative news, as there are no longer large traders on the other side of the trade.
ADA technical outlook?
The technical outlook for Cardano is bullish. The daily chart shows the price is still in an uptrend and above major moving averages. However, the relative strength index (RSI) is still in oversold territory and has not yet reached its peak.
On the technical side, Cardano’s trading volume has recently broken out of a long-term downtrend, which is another positive sign. In addition, the network’s hash rate has also been increasing steadily in recent weeks. This signifies increased miner activity and indicates that the blockchain is in good health.
At press, ADA trades at $0.3567, down by 2% in the last 24 hours. However, the bullish on-chain indicators continue to develop and gain momentum. In that case, Cardano could see a major move higher soon as investors start to take profits from their recent gains.
Conclusion
Cardano price analysis suggests it is bullish in the long term but could experience a correction first. Therefore, traders should monitor the on-chain indicators and use appropriate risk management strategies when making trading decisions. Despite this, Cardano is an attractive buy for investors looking to benefit from the cryptocurrency boom.
The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Moreover, every investment and trading move involves risk; you should conduct research when deciding.
