Cardano [ADA] has demonstrated remarkable performance over the past week. While the recent surge was significant, the latest data for ADA indicates a potential pullback. Is this the conclusion of Cardano’s bullish momentum?
Cardano’s Significant Price Surge
Recent data from CoinMarketCap illustrates that ADA experienced a notable surge in price, surpassing 60% within the week. Remarkably, in the past 24 hours alone, the token witnessed a surge of over 36% in its price.
Investors in Cardano, many of whom were previously at a loss, were able to realize profits as a result of this recent uptrend.
Specifically, around 2.35 million ADA addresses reaped profits due to this surge, representing more than 52% of all ADA addresses.
World of Chats, a well-known crypto analyst, recently shared a tweet highlighting ADA’s successful breakout following a bullish pattern formation.
This pattern emerged back in December 2023, and since then, Cardano’s price has been contained within its confines.
Post-breakout, ADA has already garnered gains exceeding 40%.
Subsequently, CryptoCrypto examined other datasets to assess the potential longevity of this bullish run, considering some bearish indicators in the mix.
Is the End of ADA’s Bull Run Near?
An evaluation of Coinglass’ data indicated a decrease in Cardano’s Long/Short Ratio within the last 24 hours.
This implies a higher prevalence of short positions compared to long positions in the market, signaling a potentially bearish trend.
Further insights from Santiment’s data shed light on Cardano’s trajectory ahead. Observations revealed a slight reduction in Cardano’s daily active addresses in recent days.
Nevertheless, most other metrics appeared bullish.
For example, both the token’s trading volume and price exhibited an uptick. An increase in trading volume alongside the price often lays the groundwork for a bullish rally. Additionally, Cardano’s MVRV ratio experienced a surge.
Moreover, Cardano’s social dominance saw a sharp uptrend, indicating a rise in the token’s popularity in recent days.
Considering these aspects, CryptoCrypto analyzed ADA’s daily chart, noting that the token’s price had breached the upper Bollinger Bands threshold.
This suggests a heightened likelihood of a price correction. Furthermore, the Relative Strength Index (RSI) was well within the overbought territory, potentially triggering a price decline.