- ADA bulls are emerging, but this could be the start of greater bullish momentum.
- ADA’s latest rally has been largely propagated by whales.
Cardano [ADA] has finally experienced a resurgence in rising demand. While this isn’t the first time in recent months, there were signs that the ADA could mount a substantial rally this time.
How much are 1,10,100 ADAs worth today?
ADA’s latest bullish effort could cause excitement among holders for one key reason. The cryptocurrency recently hit a low of $0.23 on October 19, which is the lowest price the digital coin has reached so far this month.
The same price range is notable because it marks the same lower range where price marks long-term support.
Source: TradingView
ADA is already on track for a healthy bullish effort, judging by the press time price of $0.26, which represented an 8% rally from the support level. As for the indicator, we have observed an increase in relative strength in recent days, accompanied by a spike in liquidity inflows, as indicated by the MFI.
Assess why ADA bulls can show their strength in the coming days
ADA statistics show a substantial shift in demand for ADA. For example, performance in the derivatives segment showed that it has maintained healthy open interest.
However, the same on-chain data from Hyblock showed a slowdown in demand for ADA derivatives.
Source: Hyblock Capital
Despite the notable drop in open interest, on-chain data also shows that buying activity has been more dominant in recent days. ADA’s on-chain data, especially supply distribution, shows a net gain in some whale addresses.
The number of addresses holding between 10 million and 1 billion coins has increased over the past four weeks. The same addresses hold the majority of ADA’s circulating supply and thus contributed to the bullish momentum.
Source: Santiment
Addresses in the 100 million to 1 billion range have been the most notable bullish proponents lately. The same addresses recorded a major spike in the number of coins held, confirming strong accumulation in recent days.
ADA’s average coin age has shown a steady increase over the past four weeks, confirming the same whale activity. The market capitalization also rose by almost $800 million in recent days, confirming strong inflows of liquidity.
Source: Santiment
Is your portfolio green? Check out the ADA profit calculator
Despite these findings, ADA’s on-chain volume remained within the normal range. Perhaps this is an indicator that private buyers have yet to realize their full purchasing potential.
If that is the case, we are likely to witness more bullish momentum in the coming days as retail participants jump on board.
