The weekly trading volume of altcoins has hit a peak not seen since 2021, marking a significant milestone in the cryptocurrency market.
November has seen a surge in weekly trading volumes, surpassing $303 billion, signaling renewed interest from investors in alternative digital currencies.
This increase not only indicates a rise in liquidity but also correlates with a notable uptrend in the prices of altcoins like Ethereum [ETH], Cardano [ADA], and Ripple [XRP].
Investors are expanding their investment portfolios beyond Bitcoin [BTC], lured by the promising technological advancements and potential lucrative returns offered by leading altcoins.
This heightened activity signifies the growing traction of the altcoin market, establishing it as a dynamic element within the broader cryptocurrency ecosystem.
The Surge in ADA Trading Volume and Price Forecast
Cardano’s trading volume has surged in tandem with the overall altcoin market, echoing a similar bullish momentum witnessed during the 2021 market uptrend. This notable spike in weekly volume reflects a surge in investor interest and trading activity.
This surge indicates a broader shift in market dynamics, hinting at a change in speculation within the altcoin sphere.
Investors seem to be regaining confidence in altcoins like ADA, which could pave the way for further price increases, as suggested by recent market movements.
ADA’s recent rally broke through a crucial resistance level. The ADA/USDT weekly price action showed a breakout from the consolidation phase, signaling a robust upward trajectory.
As ADA’s price approaches the previous resistance level at $0.8, a successful breach and consolidation above this point could potentially propel Cardano towards the next target around $3, a price level last seen during the 2021 peak.
This recent breakout indicates the potential for further gains if ADA can sustain its current trajectory, supported by fundamental enhancements within the Cardano network and an increase in adoption rates.
As ADA nears the $1 milestone, the focus now shifts to consistent trading volumes and market support to fuel the climb towards $3.
Analysis of Profitable Active Addresses
An assessment of the profitability of ADA holders reveals that the majority of holders are currently positioned near the breakeven point, with approximately 23.91K addresses, representing 77.80% of the total.
These addresses are predominantly situated in the price range between $0.689 and $0.795, indicating a significant accumulation zone that aligns with the current ADA price of $0.751342.
Only a small fraction, consisting of 297 addresses (less than 1% of total active ADA holder addresses), are currently facing losses.
Furthermore, around 21.23% of addresses are in a profitable position, indicating that a minority of active addresses are currently in profit.
This breakdown highlights a prevailing sentiment of profitability within the Cardano market.