Cardano‘s (ADA) ascent has paused after experiencing a slight pullback in the last 24 hours. ADA corrected but the sentiment remains bullish. ADA’s increase of approximately 23.23% over the week and about 38% over the month has sparked optimism over a longer time frame.
Santiment’s Critical Report
Experiencing such correction periods during a rising market is quite common. According to analysis based on data from the cryptocurrency analytics firm Santiment, about 81% of ADA’s circulating supply was in profit at the time of writing, up from 69% a month ago. The increased profitability led to the liquidation of weak hands and their profitable exit from the market.
Moreover, the price increase coincided with a sharp rise in ADA’s network activity. Over the past week, daily active addresses increased by 28%, while daily transaction volume saw a 12% increase. Additionally, there was a significant surge in large transactions exceeding 1 million dollars, which could indicate that whale investors are actively engaged with the ecosystem.
Expert Commentary on ADA
While smaller whales holding between 1,000 and 1 million tokens were liquidated for profit, the group of whales with 1 million to 10 million ADA were observed to be accumulating throughout the week. Popular cryptocurrency analyst Ali Martinez, in a recent tweet, mentioned that healthy network fundamentals could pave the way for ADA’s continued growth in the future.
Based on his analysis of Coinglass data, the ongoing rise has encouraged significant investments by ADA derivative traders. The amount of money locked in ADA futures contracts reached its highest level since November 2021 at 533 million dollars at the time of writing. Moreover, a larger portion of the market continued to bet on ADA’s price moving downward. The Long/Short ratio remained below 1 during the past week, which could indicate that the number of short positions exceeded those of long positions.
