The so-called “most developed” blockchain network has seen many gyrations (up and down) within the crypto market.
Traders/investors have shown faith at times despite scenes of low profitability. But it looks like this could change as publicity for the Vasil hard fork surrounds the network.
Money money money
The sixth largest cryptocurrency, ADA, over the years experienced an immense rate of trading volume caused by the number of entries.
But the profitability picture did not fully reveal a lucrative scenario. The price could not do much to break above the $1 mark despite the bullish developments on the net.
But now, the scenarios have changed, at least the statistics point in that direction.
First of all, ADA price saw a 3% increase trading around the $0.56 mark at press time.
Interestingly, according to on-chain tracker analytics firm Santiment, sentiment regarding ADA reported a positive figure as prices surged 22% in the past three weeks.
To the surprise, Cardano saw its most positive sentiment since April. In addition, the profit and loss ratio stood at the highest point since March.
Analytics firm Glassnode, in a tweet on August 16 additional,
“The ratio of on-chain transactions as taking profits to selling at a loss is at its highest level of taking profits since the last week of March.”
But again, caution is necessary, especially during these high profit periods.
Seeing a high proportion of take profit trades has a higher chance of short-term price pullbacks, which means traders need to be careful.
Nonetheless, the ecosystem saw strong confidence as ADA’s rally helped it rank sixth in CoinMarketCap’s crypto rankings by market capitalization.
Surprisingly, said push didn’t deter even after the much-discussed update delay.
The ADA social domain, for example, marked a full turnaround in recent weeks after trending down.
Additionally, 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 help the token break above the $1 mark? Well, the answer is no. The broader market rally has to be strong enough to push ADA higher.