Cardano’s Profitable Addresses Reach Highest Level Since 2021! Will The ADA Price Go Long?

As Bitcoin and Ethereum maintain strong positions above $40,000 and $2,200 respectively, the momentum is spilling over to leading altcoins. In this positive market sentiment, Cardano’s price has successfully breached a key resistance level. Concurrently, various on-chain metrics are signaling an increasing bullish hope surrounding Cardano.

Cardano’s Profitable Addresses Touch 2021’s High

Coinglass data reveals that Cardano experienced significant liquidation today, with shorts being liquidated for almost $1 million. Notably, after Cardano’s price reached a high of $0.415, a wave of liquidations by bulls ensued, totaling over $750K.

Data from IntoTheBlock shows that the percentage of profitable Cardano addresses reached a two-year high of 39.5% (1.76 million addresses) following a bullish rally triggered by Bitcoin’s surge to $40K. This uptick in profitability suggests the asset’s long-term potential and strengthens the holding sentiment among investors. Currently, 55.2% or 2.46 million addresses are experiencing losses, while 230K addresses (5.19%) are at break-even, neither gaining nor losing.

Additionally, on-chain data indicates that the volume of large-scale transactions involving ADA, specifically those exceeding $100,000, has witnessed a notable uptick, consistently setting new records. It is to be noted that this trend indicates a rising interest in ADA among institutional investors and high-net-worth individuals, often an early indicator of sudden price increases.

For Cardano, the recent uptick in activity from these large investors has followed an increase in ADA’s price, observable across various time periods. Despite Cardano’s open interest climbing to a six-month peak of $190 million, the current market sentiment is increasingly bearish, with investors exiting at a profit.

The long/short ratio has seen a significant drop in recent hours, reaching a low of 0.7004. Currently, over 58% of holders anticipate a decline in ADA’s price from its $0.4 high, while only 42% remain hopeful for a price surge.

What’s Next For ADA Price?

Cardano has found support at the 20-day Exponential Moving Average (EMA) priced at $0.39, yet there is a noticeable struggle to initiate a strong push above this level, indicating a reduced demand at higher prices. As of writing, ADA price trades at $0.3992, surging over 2.3% from yesterday’s rate.

Currently, the price is caught in a tight range between the support of $0.37 and the overhead resistance at $0.41. The slight upward trajectory of the 20-day EMA, with the Relative Strength Index (RSI) remaining above 58, suggest a slight advantage for the bulls. Should the buyers manage to breach the $0.41 resistance, it could trigger an increase in bullish momentum, potentially pushing the price toward $0.42 and then possibly to $0.463.

On the flip side, a drop below the 20-day EMA and the uptrend line would indicate that short-term traders are taking profits. This could lead the price to decline towards $0.34, where bulls might attempt to halt further losses.