ADA reached a volume level it last experienced in November
However, the RSI statistic indicated that a price reversal could be imminent
After what felt like a turbulent 2022, Cardano [ADA] turned out to be running into 2023 on the green side of the market. At the start of 2023, the asset’s rally has built up significant value and other indicators have been there as well.
Is the upswing sustainable, and if so, for how long? Also, is there any reason(s) why the current uptick is being perceived by the asset?
Read Cardanos [ADA] Price forecast 2023-2024
Whales trade and volume stats up
Since its inception, the peer-reviewed blockchain has put a lot of effort into establishing itself as a real and practical alternative platform to smart contracts.
Cardano [ADA], the platform’s native token, has also experienced price swings. These fluctuations are indicative of both the general trend of the market and the mood related to the currency.
Recent statistics van Santiment indicated that interest in the ADA coin has recently increased sharply. In the same time frame, it had also become apparent that whale trades had increased.
According to the amount shown on the Santiment table, the volume of ADA reached about 1 billion on January 9. It last reached a higher volume in November 2022. The volume was over 500 million at the time of writing, which was also more than what was observed in December 2022.
Source: Sentiment
Creating recognizable utility
While the immediate cause of the recent price increase may not be fully understood, the recent general market trend spurred by the Bitcoin rally may be a theory.
Also a recent one tweet from Charles Hoskinson could be another explanation for the rally. Cardano’s CEO announced in a tweet on Jan. 6 the launch of a hospital scheduled for February. He responded to a reply by saying that ADA can be used to pay at the hospital, which was the most notable part of the tweet.
The ability to accept ADA payments at the hospital could be a relevant tool for investors, which could explain the buzz around the asset.
27% increase, but RSI cautiously blinking in a daily time frame
On a daily time frame, from the end of 2022 to the time of writing, the value of ADA had increased by more than 27%. It had appreciated about 7% in the prior trading period and was currently trading at about $0.3.
Source: TradingView
However, a look at the Relative Strength Index (RSI) statistic suggested what holders and investors could expect in terms of price movements. At the time of writing, the RSI line was visible in overbought territory.
When the buying pressure eases, a price reversal may be imminent based on the location of the RSI line. Until volatility subsides, potential buyers may want to wait to expand their holdings.
Are your positions flashing green? Check the ADA Profit Calculator
Over the past 30 days, the current wave has helped holders make some money. ADA operated at a gain of 11.14% based on the 30-day market value to realized value (MVRV) ratio observed. Investors who bought and held the asset in the past 30 days made an 11% profit on their investments.
Source: Sentiment
This post Is Cardano’s latest uptick one of many short bull runs? decrypt…
was published first on https://ambcrypto.com/is-cardanos-latest-upswing-one-of-its-many-short-bull-runs-decoding/
