Cardano Hits $1 for the First Time in Two Years, Signaling Strong Market Momentum

Cardano’s native token, ADA, has broken a significant price barrier, reaching over $1 for the first time in two years.

Currently trading at $1.09, ADA has surged by 23% in just 24 hours, with its trading volume spiking by 83% during the same period. This strong upward momentum suggests that the rally could continue as buying pressure intensifies.

As ADA climbs past the $1 mark, many holders are seeing profits. According to the Global In/Out of the Money indicator by IntoTheBlock, 71% of ADA holders, equating to 3.15 million addresses, are now “in the money,” meaning their holdings are worth more than the price at which they purchased them.

However, about 16% of ADA holders, or 715,230 addresses, are “out of the money” and would incur losses if they sold at the current price, as they acquired their tokens when ADA was priced above $1.40.

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Interestingly, the price rise has prompted long-term holders to start moving their assets. This shift is evident in the spike in ADA’s age-consumed metric, which hit a monthly high of 86.91 billion on November 22, signaling a potential trend change.

Long-term holders typically keep their coins stashed away, so when they do transfer or sell them, it often signals a shift in market dynamics. This activity, combined with rising trading volume and price momentum, could drive further upward movement, attracting new buyers into the market.

Kosta Gushterov