Altcoins like Cardano (ADA) saw widespread appreciation, similar to the altcoin cycle observed in early November. This cycle occurred as Bitcoin’s momentum waned, prompting traders to secure profits and focus their investments in smaller cryptocurrencies.
Due to Bitcoin’s (BTC) consistent price, which encouraged capital rotation into alternative coins, native tokens associated with layer 1 (L1) blockchains saw the biggest gains on Saturday. Cardano (ADA) was the best performer in the weekend’s top 10 rankings.
According to data from Coingecko, the ADA price has risen 27% to 64 cents in the past day, for a period of strong growth of 56.3% during the past seven days. It is the largest increase since August 2022.
Now that the three main hurdles – the $0.40, $0.45 and $0.50 – have been cleared, investors may begin to experience FOMO, or “fear of missing out,” as they discover that ADA is an attractive investment.
Cardano’s bullish momentum creates optimism
Undoubtedly, Cardano has emerged as one of the most attractive assets available on the cryptocurrency scene and is attracting interest as traders fervently hope that the current bullish trend will hold or they will be in for a surprise disappointment.
The steady rise in the money flow index (MFI) indicates that Cardano is firmly in the hands of bulls. For traders, there are several prospects for scalping at the moment, but to maintain investor optimism for a recovery to $1.00, ADA price needs to confirm higher support above $0.64.
Cardano currently trading at $0.622836 level today. Chart: TradingView.com
An indicator that keeps track of how much money comes in and out of Cardano is the MFI. Prices usually rise when the inflow volume greatly exceeds the outflow volume. This could explain the $0.65 breakout, and ADA could look to close the gap to $1 before the end of December if the trend remains stable.
The ADA price is known for its gradual but consistent increase, which is why the token did not experience a strong increase despite favorable market sentiment.
Cardano Daily Active Addresses Climbing
However, the contours of the coming trade appear to have changed as traders become more involved in the network, which could perhaps support a healthy rebound. The on-chain statistics show that the daily active address has increased significantly and reached quarterly highs.
Source: IntoTheBlock
Based on data from IntoTheBlock, approximately 80% of Cardano wallet addresses are sitting on unrealized gains at the current price level of $0.56.
If the aforementioned wallet addresses realize their profits, the asset’s price could correct as more people would be inclined to sell.
📈 The remarkable #crypto market leaders of the past 24 hours are #Cardano (+19%), #Solana (+11%), and #Optimism (+11%). They are all experiencing one of their highest social dominance days of 2023. This also implies #FOMO When you step in, it’s wise to proceed with caution. https://t.co/QvxDrofqJt pic.twitter.com/aUqIDoCLho
— Santiment (@santimentfeed) December 8, 2023
Meanwhile, ADA and a few other popular cryptocurrencies have exploded into social dominance, although Bitcoin’s influence is also growing.
According to Santiment’s data above, market participants are now more bullish on altcoins, especially Cardano. Along with a sharp increase in costs, social media conversations reached a two-month high, signaling the onset of FOMO.
Therefore, the coming days can be considered extremely important because the fear of FOMO also carries a high risk of rejection once it reaches the critical points.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
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