Cardano (ADA) rallied alongside the entire market as the weekend drew to a close. However, the digital asset did investors one better as it recorded one of the highest single-day movements during this time. Growing as high as 50%, it has now conclusively left behind the below $1 territory that it had been struggling with given that this rally had seen it touch as high as $1.2.
There is no doubt that this spells good news for the digital asset in the short term. But the question remains where Cardano can go from here given that it is coming out of months of subpar performance.
Cardano Claims Monday
A good portion of Cardano’s gains has come out of the weekend rally but the digital asset has not stopped there given that it saw even more push in the early hours of Monday. This trend has instilled hope in the holder base who have had to weather months of declining prices after ADA had hit its all-time high back in 2021. If the opening trend of early Monday continues into the day, then ADA may very well test $1.3 before the day is over.
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There is now a clear demarcation between what part of the market both bulls and bears control, showing that bulls are currently in control. But this is only for the short term because if buy pressure falls from here, then bears can swiftly take hold of the market.
ADA price trending at $1.18 as bulls take over | Source: ADAUSD on TradingView.com
Nevertheless, a look at the 50-day moving average paints a positive picture of the digital asset. Cardano which had consistently proved unable to hold above this point is now successfully trading above it. This has shifted sentiment towards the positive, but not by much.
ADA still remains a seller’s market even though sentiment has turned positive in the short term. Following the performance of Cardano over the past few months, a break above the $1.25 resistance point is important as it will help seal its arrival in the bull rally.
How Are ADA Holders Faring?
Despite the recent rally, ADA holders are still recording some of the highest losses in the market. Since the majority of these holders (76%) are those that have held their coins lower than one year, it is a market that is significantly driven by these short-term holders, most of whom continue to record losses in their portfolios.
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Data from IntoTheBlock shows that the vast majority of Cardano holders are firmly in the loss. In total, 61% of holders are losing money even following the weekend rally. One of the highest of any digital asset.
Majority of ADA holders in loss | Source: IntoTheBlock
Only 29% of Cardano holders remain in profit and these are mostly holders that have held on to their coins for longer than one year. The rest of the holder composition (9%) is in neutral territory, meaning they purchased their tokens at the same price the asset is currently trading.
ADA is trading at $1.18 at the time of this writing and its market cap has recovered to the $39 billion mark.
Featured image from Cointribune, charts from IntoTheBlock and TradingView.com
