Cardano Breaches $1 as On-Chain Metrics Signal Strong Holder Confidence
- Following a 24% rally and 131% trading volume spike, Cardano marks its highest level since April 2022.
- Long-term holder activity surges as 71% of ADA addresses report unrealized profits, signaling market shifts.
- Technical metrics suggest continued upward momentum, with $1.24 as the next target and $1.00 as key support.
Cardano (ADA) has achieved a significant milestone, breaking above $1 for the first time since April 2022. The cryptocurrency currently trades at $1.09, marking a powerful 24% surge in the last 24 hours, accompanied by a 131% spike in trading volume.
Majority of Cardano Holders Enter Profit Zone
The breakthrough has substantially improved the profitability profile of ADA holders. IntoTheBlocks Global In/Out of the Money indicator reveals that 71% of addresses (3.15 million) are now in the money, signifying unrealized profits at current price levels.
The data shows a significant shift in holder profitability, market analysts noted. Only 16% of addresses, approximately 715,230, remain underwater with average entry points above $1.40.
Santiment data highlights unprecedented movement among long-term holders, with the age-consumed metric reaching a monthly peak of 86.91 billion on November 22. This surge in activity, coinciding with positive price action and increased volume, suggests strategic repositioning by veteran holders.
The spike in age-consumed metrics often precedes significant market movements, technical analysts observed. When combined with strong volume and price action, it typically signals a shift in market dynamics.
The daily chart presents robust bullish signals, with the Aroon Up Line maintaining a perfect 100% reading. This technical formation traditionally indicates strong upward momentum and the potential for continued price appreciation.
As the rally continues, market watchers identify key levels:
- Immediate target: $1.24 (March 2022 high)
- Critical support: $1.00
- Secondary support: $0.85
The sustainability of ADAs upward trajectory depends on maintaining buying pressure and preventing excessive profit-taking, which could trigger a retest of lower support levels.
Read more: https://thenewscrypto.com/cardano-breaches-1-as-on-chain-metrics-signal-strong-holder-confidence/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
