Cardano (ADA) price has surged past the $1 mark. It is trading at $1.06 in what has become a highly-watched rally in the cryptocurrency space. This is the first time since April of this year that the token has hit this level.
Market observers and analysts are now determining if this should mark the beginning of a more prolonged rally.
Cardano Market Cap Triples Amid Increased Trading Activity
Data from Santiment shows that market capitalization of Cardano has tripled in the past 17 days. This signifies that investors are back in the market.
In this period, ADA reported a realised profit of $165 million in a single day. Consequently, this was the highest number in eight months.
The cryptocurrency has also seen an impressive increase of 22% in its price within a single day. ADA trading volume rose by 78% to reach $7.4 billion.
This comes at a time when there has been an increasing trend of accumulation among whales that hold ADA. Transactions on the network are now above $22 billion on a daily basis indicating a high demand from the high net worth investors.
As pointed out by the experts, this accumulation phase is the driving force behind the cryptocurrency’s upward movement.
Open Interest and Social Metrics Indicate Strong Momentum
Open interest in Cardano has also increased significantly and was up by 33% to reach $1.08 billion, as revealed by data from CoinGlass. This rise points to a higher open interest in ADA linked futures contracts, which means that traders are now preparing for further price swings.
At the same time, short liquidations of $11 million within 24 hours influenced the traders who used ADA’s decline to push the price up and forced them to close their positions.
In the social sphere, mentions of Cardano have reached their highest point in 11 months, which shows that more and more people are interested in the token. This is because social engagement is known to gather pace during bullish trends similar to what was observed in previous upward trends.
Analysts Predict ADA Price Targets of $6 to $15
The current price increase has prompted analysts to set high targets for ADA’s price. Technical analyst Ali Martinez pointed out that the ADA price action in recent days resembles the previous bullish trends.
Major levels of support and resistance have been seen at $0.80 and $1.05 respectively. These levels come with the possible targets on the upside of $6 to $15 depending on the course of the trend.
Similarly, Dan Gambardello, another analyst, noted that Cardano has recorded a 200% surge in the last three weeks. This surge follows previous trends.
He also added that continued whale action and the ongoing accumulation could see ADA price moving further up the value chart with the $10-$15 zone being seen as quite achievable.
Cardano is now transitioning to a new phase of market activity, and several factors could affect its path. The higher trading volumes and whales’ activity indicate greater involvement of institutions and retail investors.
Additionally, the growth of open interest and liquidations suggest an active futures market with an increased level of fluctuation. The same can lead to potential price rises.
At press time, Cardano (ADA) price is valued at $1.10. It has a 24-hour change of 24.62% with a market capitalization of $38.72 billion.
The trading volume rose by 77.01 % to $7.40 billion as there was increased activity. This rally has now positioned ADA as one of the largest gainers in the current market rally.
