Cardano Addresses With $2.7B ADA Hit Break Even After ADA/BTC Bottoms Out

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As a researcher with extensive experience in the cryptocurrency market, I find Cardano’s recent surge beyond $0.48 an intriguing development. The fact that holders of Cardano tokens with an average purchase price of $0.47 have now reached break even is a significant milestone, and a further rally could make these investments profitable.

The cryptocurrency Cardano (ADA) has experienced a remarkable upward trend today, pushing its price above $0.48 for the first time. As a result, investors holding approximately $2.71 billion worth of ADA tokens have now recouped their losses that accumulated during the previous price drops.

Cardano Addresses Hit Break Even

Based on Into The Block’s analysis of the Cardano blockchain, investors who bought ADA at an average price of $0.47 have now broken even. Consequently, any subsequent price increase would result in profitable returns for these investments. Additionally, industry experts speculate that Cardano is gearing up for a rally due to the recent bottoming out of the ADA/BTC pair price.

In a recent examination of the crypto market, Sebastian, a well-known cryptocurrency analyst, pointed out optimistic indicators for Cardano (ADA) in comparison to Bitcoin (BTC). Based on his analysis, the ADA/BTC price chart seems to have reached its lowest point at 0.00000680 on May 16, suggesting a possible bullish turnaround. Following this bottom, there was a noticeable uptick in the value of ADA relative to BTC.

As a crypto investor, I’ve noticed an encouraging development in the last 24 hours. The price of Cardano inched up by 0.28%, reaching 0.00000723. An intriguing technical detail that emerged is bullish divergence. This indicator implies that while the price has been trending downward, the momentum or the rate of change has started to move upward. It’s a possible sign that the downtrend might be weakening and a price rally could be on the horizon for Cardano.

The analyst underlined the significance of a key resistance point, lying above 0.0000079. Should ADA surpass this hurdle, according to Sebastian, it may instigate a prolonged surge, positioning Cardano as an attractive option for investors aiming to gain substantial returns. In essence, his recommendation was to exchange Bitcoin for Cardano at this opportune moment and prepare for the upcoming price increase, implying that Cardano could potentially surpass Bitcoin’s performance in the short term.

ADA Price Surges

The price of Cardano came close to hitting $0.49 and reached a high of $0.4899 on Saturday, May 18th. At present, the cost of ADA is increasing by 1.21% to $0.4862. However, the trading volume for this cryptocurrency saw a significant decrease of 24.31% in the last 24 hours, amounting to $327.18 million. Cardano currently holds a market capitalization of $17.31 billion.

As a market analyst, I’ve observed that the Cardano futures open interest remained unchanged at approximately $289.77 million based on Coinglass data. However, an interesting development unfolded as short sellers took the driver’s seat during the recent ADA price rebound. Consequently, the short liquidations surpassed long liquidations significantly with a total of $282.66 million in the last 24 hours – almost four times the amount of long liquidations.

Short liquidations might cause a rise in Cardano’s price temporarily, but a downturn could follow soon. At present, the ADA value is above its 10-day moving average of $0.46, signaling a positive short-term sentiment. However, the long-term perspective shows that the crypto has been trending downwards as it trades below both its 100-day and 200-day moving averages, which stand at $0.525 and $0.507 respectively.

 

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2024-05-18 13:56