- ADA trading volume surged as the price of the token witnessed a massive uptick.
- Despite a surge in price, most holders were not profitable.
Over the past few days, there has been a resurgence of interest in Cardano’s [ADA] token, ADA. According to recent data, ADA’s 24-hour trading volume surpassed $550 million.
Source: X
Long way to go
Coupled with an uptick in volume, there was growth seen in terms of price movement as well. In the last 24 hours, the price of ADA surged by 4.43% and was trading at $0.4498 at the time of writing.
Despite the recent price surge, the overall situation for Cardano remained glib.
Since the 15th of March, ADA’s price started on its downward trajectory, while showcasing multiple lower lows and lower highs along the way.
This was indicative of a bearish trend which ADA was unable to reverse over the last few months.
To reverse this trend, ADA may have to test the $0.5761 level and surpass it. However, at the time of writing, ADA was nowhere near this level.
Even though ADA had a long way to go, the indicators for ADA painted a positive picture.
The CMF (Chaikin Money Flow) for ADA had surged to 0.6 revealing that the money flowing into ADA had surged.
Additionally, the RSI (Relative Strength Index) for ADA had also grown, indicating a surge in bullish momentum for the token.
Even though these factors can give some optimism to ADA holders, it is important to take into consideration that a massive uptick in price would be needed before a trend reversal occurs.
Source: Trading View
Activity on-chain
Coming to the on-chain data, it was seen that the velocity at which ADA was trading at had grown significantly.
This meant that the frequency at which ADA was being traded had surged, which could be a positive sign for the altcoin. Moreover, the MVRV ratio remained negative despite the surge in price.
Read Cardano’s [ADA] Price Prediction 2024-25
A negative MVRV ratio indicated that most holders were not profitable at the time of writing. This gives holders no incentives to sell and reduces selling pressure on the ADA token.
ADA’s price can continue to rise till holders reach profitability. When the holders reach a stage where they can sell their holdings for some gains, there maybe a correction expected.
Source: Santiment