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Cardano bulls buy $6 billion worth of ADA on Christmas, target price $1
Cardano bulls buy $6 billion worth of ADA on Christmas, target price $1
December 26, 2024
Cardano ADA
Cardano bulls have accumulated a large amount of ADA coins over the Christmas period amid a recovery in the broader cryptocurrency market.
For context, Cardano started Christmas Day at $0.93, but then experienced a wave of short selling within hours of the day, with the price falling to retest the $0.91 support level. However, the bulls showed strong defense, which triggered a recovery in the price towards the $0.94 mark.
The rally was relatively short-lived and was followed by a slight pullback and subsequent consolidation. It is worth noting that ADA is attempting to build on its recent uptrend that began on December 23, when it closed at 4.8%. However, the bears killed the momentum on Christmas Day.
Cardano bull run buys over 6 billion ADA
Nonetheless, Cardano bulls appear to be stepping up their buying efforts. Data from IntoTheBlock shows that these investors purchased approximately 6.83 billion ADA tokens worth $6.352 billion on Christmas Day.
For context, longs are market participants who have purchased at least 1% of Cardano’s trading volume in a 24-hour period. While the latest purchases were down from previous highs, the overall net inflows marked a two-week high.
In particular, Cardano shorts saw a more significant drop in sales volume in addition to longs. Notably, these addresses sold 6.82 billion ADA on Christmas Day, the lowest sales volume in more than a year.
Cardano Bulls and Bears | IntoTheBlock
Interestingly, this long-short volume led to an excess demand for Cardano of 7.53 million (about $7 million) yesterday, which was the highest demand ADA has seen since December 10, which previously led to a price increase to $1 in three days.
As the cryptocurrency market shows signs of a potential recovery, a new trend of excess demand could give bulls enough strength to push Cardano prices above the current range. However, this may not happen until after the festive season is over.
For context, markets were relatively quiet over the Christmas period as most market participants turned their focus to things other than trading. This was reflected in Cardano’s transaction volume, which fell to a nearly two-month low on Christmas Day with just 4,330 transactions.
ADA Blockchain Transactions IntoTheBlock
Cardano aims for $1
Nonetheless, analysts expect the recovery to trigger the next wave of Cardano’s gains. Bitcoin and cryptocurrency trader Flash said on Christmas Eve that Cardano is about to truly begin its own bull run, which he believes will begin when ADA rises back to the $1.25 level.
# Cardano $Ada
The real bull run begins above $1.25 pic.twitter.com/VxQPU31c2C
— FLASH (@THEFLASHTRADING) December 24, 2024
Meanwhile, Cardano is trading at $0.8705 at the time of reporting, having lost $5.07% today, correcting all gains from its recent rally. ADA’s chances of a full recovery depend on its ability to retake support at $1, which would require a push above the 21-day EMA at $1.014.
Cardano 1-day chart
Despite the bearish pressure, the technical outlook remains favorable. For example, Cardano’s Commodity Channel Index (CCI) has dropped to negative 91, which suggests it may be oversold. Data from CryptoQuant also confirmed that the RSI has entered the oversold zone and a recovery is imminent.
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