Of all the altcoins that rallied over the past weekend, Cardano (ADA) had the best success story. It hit a snag yesterday as the mother of all crypto, Bitcoin (BTC), lost its momentum in the $43K range. Today is a different story as ADA just pumped around seven percent as a long green BTC was lit.
Cardano Now
As of this writing at 11:00 AM UTC on Tuesday, Cardano is teasing a comeback on the $0.60 mark with a current price of $0.5968. The numbers show a gain of 7.24% in the 24-hour frame, which also raises the market cap of the coin to $21.085 billion. Trading volume within that period is, however, down by 1.5% to $1.23 billion as the token surged from a $0.5246 low to a $0.598 high.
ADA has been on a massive spike this week, exhibiting a 49% gain. Zooming out the charts on the monthly indicates a 53% gain while the 52-week chart shows a 94% increase in the valuation of the crypto. Cardano has been the best-performing crypto so far after opening 2023 with a dismal $0.24 price.
Shorts Rekt
The resurgence of Cardano resulted in the liquidation of $2.1 million shorts in a day. Cutting it down to the 12-hour chart frame illustrates 1.25 million shorts closing while zooming in the past hour displays $44.8K shorts wiped.
Onchain data reveals a total of $3.57 million holdings rekt in the daily map, wherein $1.48 accounted for rekt longs. Within the same span, open interest increased by 10.46% to $320.05 million. A high open interest suggests a high level of liquidity for options, which makes it easy for traders to enter and exit their positions at fair market prices.
On the other hand, the options volume declined by around 92%, reflecting investor demand and liquidity for options contracts.
Positive Outlook Going to 2024
Despite the bull run of Cardano, we are still 80% away from its all-time high achieved on September 2021 at $3.10. Although that’s a far cry from its position now, optimism runs high that it will reclaim the $1 mark by the end of December. But then again, cautious analysts are warning that it might retract to $0.43 or even $0.23 by next year.
Cardano prides itself on its proof-of-stake consensus that promises sustainable operations. It also presents an ideal platform for decentralized application (DApp) development.
With the lack of updates in its ecosystem though, the current rally may be seen as a mere bandwagoning on the moves of Bitcoin, so always tread with caution as it pumps higher. Be sure to supplement your investment decisions with due diligence, and don’t forget to set your stop losses and take profits accordingly.