Cardano (ADA) has witnessed a robust performance, surging by 48% in the past week and reclaiming the $0.6 level for the first time in over a year.
Despite this positive momentum, the ADA token is undergoing a correction, experiencing a 6.5% decline in the last 24 hours. This has led to concerns among investors, prompting questions about whether the altcoin’s recent price rally has come to an end.
Cardano (ADA) Hits 18-Month High at $0.63: Surge and Key Drivers
On Saturday, December 9, Cardano experienced a notable surge, reaching $0.63, a price level unseen since June 2022. The surge follows various on-chain dynamics, as reported by Santiment.
A Santiment report points to significant factors propelling ADA’s recent price increase. Growing trading volume, increased weighted sentiment, and heightened social dominance are identified as key drivers. Notably, ADA’s volume, sentiment, and discussion rate have hit their peaks in 2023, indicating a robust market response.
Santiment’s analysis reveals a resurgence of interest in Cardano among market participants. ADA has reentered the forefront of crypto discussions, constituting 4% of all crypto-related conversations on Saturday. Moreover, elevated FOMO levels suggest heightened market excitement, signaling a sense of urgency among investors.
Cardano volume, sentiment, and discussion reach 2023 peak | Source: Santiment/X
Cardano’s Continued Momentum and Analyst’s Caution: A 56% Monthly Surge
Cardano’s recent performance extends beyond the short-term, with a substantial 56% increase in the past month, according to CoinGecko data.
Notably, analyst Ali Martinez has raised a cautionary flag for ADA. On the X platform, Martinez highlighted bearish signals on the 3-day and 1-day charts, suggesting a potential pullback of one to four candlesticks. However, the analyst anticipates this to be a short-term correction, with Cardano likely to resume its upward trend.
Watch out! ⚠️ Sell signals have emerged on both the 3-day and 1-day $ADA charts, suggesting a potential correction of one to four candlesticks.
This may just be a short-term pullback before #Cardano resumes its uptrend! pic.twitter.com/t1e1aQLotw
— Ali (@ali_charts) December 9, 2023
As of the latest data, ADA is valued at $0.5766, reflecting a 6.5% decline in the past 24 hours. Despite this, Cardano maintains its position among the top 10 cryptocurrencies, boasting a market capitalization of $20.45 billion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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