Cardano Hits $0.599 as Institutional Investors Ramp Up Activity

• Over 50% of Cardano holders are back in profit, highlighting ADA’s strong recovery and investor confidence.
• Cardano’s derivatives market activity declines sharply, despite bullish sentiment from top traders on major exchanges.
• Institutional investors drive $34.26B in high-value transactions, as long-term holders show unwavering confidence in Cardano.

Cardano’s (ADA) price surged, bringing substantial relief to its investors. More than 50% of ADA holders now hold profitable positions, according to IntoTheBlock. ADA recovered strongly, a pattern consistent with its history of rapid profitability increases. As of November 12, 2024, Cardano trades at $0.599. Its 24-hour trading volume is over $3.6 billion. The price dropped 4.09% recently, but the asset’s market cap is still $20.98 billion.

Derivatives Market Faces Decline

Cardano’s derivatives market slowed considerably. Trading volume fell 25.45%, and open interest declined 10.95%. Additionally, the options market saw a drastic 92.94% drop in trading volume. This indicates reduced market interest, which appears at odds with the optimism of top traders on platforms like Binance and OKX.

The long/short ratios on these exchanges are over 2.0. This may indicate bullish sentiment among large investors. However, $11.19 million in long positions liquidated in the past 24 hours, which suggests potential volatility ahead.

Institutional Investment Remains Strong

Institutional investors made $34.26 billion in high-value transactions last week. Large holders now hold 29% of ADA’s circulating supply. Furthermore, 73% of investors held their positions for the long term, which may show strong confidence in the asset’s prospects. Cardano’s correlation with Bitcoin is 0.81, aligning it with broader market trends. However, Cardano’s Telegram membership fell 0.24%, perhaps indicating some retail pullback.

Technical Indicators Suggest Caution

Cardano’s recent bullish rally rose to a high of $0.594. The daily candlestick pattern shows consecutive green candles and higher highs , which may suggest strong upward momentum. Trading volume rose, with 18.86 million ADA traded, suggesting heightened investor participation.

However, the Relative Strength Index (RSI) has reached 85.23, indicating overbought conditions. This suggests a potential pullback or consolidation in the short term. Similarly, the MACD shows strong bullish momentum, but its steep ascent hints at a possible overextension.

Price Projections for 2024

Coin Edition’s price prediction, prepared with detailed market insights, project mixed performance for Cardano in 2024. Expectation is that in December, ADA will likely trade between $0.328 and $0.549 with average trading value likely to stabilize around $0.439. 

With whales becoming more active and institutional investment rising, Cardano’s outlook remains cautiously optimistic. Although short-term volatility may occur, the asset indicates the potential for long-term growth, supported by increasing market confidence.