Altcoin Cycle Spurs Growth in Cardano (ADA)
Cardano (ADA) and other altcoins experienced a significant increase in value, similar to the altcoin cycle seen in November. This occurred as Bitcoin’s momentum slowed down, causing traders to secure profits and invest in smaller cryptocurrencies.
Native tokens associated with layer 1 blockchains, like Cardano, saw the highest gains. According to Coingecko data, ADA’s price rose by 27% in the last day, reaching 64 cents. This marks a strong growth of 56.3% over the previous week, the largest increase since August 2022.
With key obstacles at $0.40, $0.45, and $0.50 removed, investors may start experiencing FOMO (fear of missing out) as they recognize ADA as an attractive investment opportunity.
Cardano Bullish Momentum Fuels Optimism
Cardano has become one of the most appealing assets in the cryptocurrency scene. Traders are hoping that the current bullish trend will continue but remain cautious about a potential letdown.
The steady rise of the money flow index (MFI) indicates that Cardano is firmly controlled by bulls. Traders have several scalping opportunities, but for investor optimism to hold for a recovery to $1.00, ADA’s price needs to confirm higher support above $0.64.
If the trend remains steady, there is a possibility that ADA could close the gap to $1 before the end of December, considering the breakout from $0.65.
Cardano Daily Active Addresses on the Rise
The upcoming trade outlook seems to have changed as traders become more engaged on the Cardano network, potentially supporting a healthy surge in price. Daily active addresses have significantly increased, reaching quarterly highs.
Based on IntoTheBlock data, around 80% of Cardano wallet addresses are currently sitting on unrealized profits at the current price level of $0.56. If these wallet addresses decide to realize their gains, it could lead to a correction in the asset’s price as more people sell.
Hot Take: Increased Optimism for Cardano’s Growth
Recent market data shows that Cardano, along with other altcoins like Solana and Optimism, is experiencing high social dominance and positive sentiment. Social media conversations about these altcoins have reached a two-month high, indicating the onset of FOMO.
However, caution is advised as FOMO carries the risk of rejection once critical points are reached. The next few days will be crucial in determining the future growth of Cardano and whether it can maintain its current bullish momentum.
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