Why is Cardano's ADA rising today? – FXStreet

Cardano price today: $0.98

• Cardano's weekly active addresses exceeded 350,000 for the first time since June 2023.
• Even though ADA investors have earned an average of 75%, on-chain data shows there is more room for price appreciation.
• ADA futures open interest hit a three-year high of $725.83 million, amid increasing buying pressure across the spot market.
• ADA is eyeing a 30% rally to $1.26 after breaking the three-year resistance level at $0.908.

Cardano (ADA) soared 24% to $0.98 on Friday on the back of weekly active address growth, increased open interest, and spot buying pressure.

ADA’s on-chain indicators paint a bullish outlook

Cardano’s weekly active addresses have been at a high level since the crypto market rally began on November 6th following President-elect Donald Trump’s election victory. Although the market saw several corrections, it maintained an upward trend and exceeded 350,000 weekly active addresses for the first time since June 2023.

This indicates that the rise in ADA prices is not only driven by whale buying activity, but also by network usage.

ADA Weekly Active Addresses | Santiment

Meanwhile, ADA's market value-to-realized value (MVRV) ratio, which measures the average gain or loss of all investors based on the time the token last moved, has risen over 75%, which is a bullish move in 2021. This is the level last seen in the market. This shows that all ADA investors have made an average return of 75% on their original investment. When profits rise to such high levels, holders may gradually start taking profits, which may cause a slight price decline.

ADA MVRV Ratio | Santiment

This is evidenced by Santiment data, which shows that ADA investors realized over $200 million in profits in the past two days. However, realized gains are still lower than levels seen during the crypto market rally in March, indicating that most investors are still holding onto tokens in anticipation of continued price increases.

ADA Network Realized P&L | Santiment

The ADA MVRV Long/Short Difference, which measures the difference between the 365-day and 60-day MVRV ratio, confirms that Cardano price is still at 18% and could rise further. Historically, this metric exceeds the 50% mark before the ADA begins to correct.

ADA MVRV Long/Short Difference | Santiment

Meanwhile, ADA futures open interest (OI) surged to a three-year high of $725.83 million on Thursday, according to Coinglass data. Open interest is the total number of outstanding contracts in the derivatives market. An increase in OI with each price increase indicates confidence in the uptrend.

ADA's spot trading volume and net flow data are consistent with the bullish outlook, showing increased trading and exchange outflows over the past week.

ADA Spot Trading Volume and Net Flow | Coin Glass

ADA could extend gains to $1.26 after rallying 22% in the past 24 hours

The 24% rise in ADA resulted in over $12 million in liquidations, with liquidated long and short positions accounting for $3.79 million and $8.6 million, respectively.

ADA could rally towards $1.263, nearly 30% above the $1 mark, after breaking through the April 2022 resistance level at $0.908.

ADA/USDT weekly chart

However, the Relative Strength Index (RSI) is in oversold territory at 80, indicating that ADA could see a price correction soon. The Awesome Oscillator has risen above the neutral level for the first time since April, indicating bullish momentum is building.

The bullish theory will be invalidated if the daily candlestick falls below $0.683.