Cardano (ADA) has bounced back from its recent crash, climbing above $0.85 and edging closer to the critical $1 mark.
The recovery has come despite noticeable spikes in selling activity, as investor demand appears to be balancing out market pressure and sustaining upward momentum.
Cardano Investors’ Mild Selling
Network data shows realized profits spiking multiple times over the past few weeks. Investors have been selling ADA to secure gains, reflecting cautious sentiment in the market. Despite this, most of these selling spikes have been modest, with realized profits generally staying below the $50 million mark.
Sponsored
Sponsored
This threshold is crucial because selling above it tends to weigh heavily on price action. With most sell-offs staying under this level, ADA has managed to maintain its upward trajectory.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Cardano’s macro performance remains tied closely to Bitcoin. The correlation between ADA and BTC currently sits at 0.78, highlighting the influence of the crypto king on ADA’s trajectory. With Bitcoin approaching the $120,000 level, a breakout above this barrier could directly fuel demand for Cardano.
However, the correlation indicator has shown a small dip recently, raising concerns about whether the decline will continue. If Cardano decouples further from Bitcoin, its reliance on BTC’s momentum for growth may weaken.
Go to Source to See Full Article
Author: Aaryamann Shrivastava
