The so-called ‘most developed‘ blockchain network has witnessed many turns (up and down) within the crypto market.
Traders/investors have showcased faith at times despite the low profitability scenes. But it looks like this could change as Vasil hard fork hype surrounds the network.
The sixth largest cryptocurrency, ADA, over the years, saw an immense rate of trading volume caused by the number of entries.
But the profitability picture didn’t quite reveal a lucrative scenario. The price couldn’t do much to surpass the $1 mark despite bullish network developments.
But now, scenarios have changed at least the stats point in that direction.
Firstly, the price of ADA witnessed a 3% surge as it traded around the $0.56 mark at press time.
Interestingly, as per analytic firm Santiment’s on-chain tracker, sentiment concerning ADA reported a positive figure as the prices surged by +22% in the past three weeks.
Much to the surprise, Cardano saw its most positive sentiment since April. Also, the Profit/Loss ratio stood at the highest point since March.
The analytical firm Glassnode, in a 16 August tweet added,
“The ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March.”
But again, one needs to maintain caution, especially during these high gain periods.
Seeing a high ratio of profit-taking transactions has a higher likelihood of short-term price retracements, which means traders need to be careful.
Nonetheless, the ecosystem did see a whole of confidence as ADA’s uptick helped it take the sixth spot on CoinMarketCap’s crypto-rankings by market capitalization.
Surprisingly, the said momentum didn’t deter even after the delay in the much-discussed upgrade.
ADA’s social dominance for instance marked a complete turnover over the last few weeks after a downtrend.
In addition, over the last three months, the richest 1% of addresses holding ADA increased their holdings by 0.17%.
They held 28.98 billion ADA coins just three days ago, with no significant change at press time.
But the question remains- Is this enough to aid the token to surpass the $1 mark? Well, the answer is no. The broader market rally has to be strong enough to take ADA uphill.