Cardano (ADA) is showing resilience despite recent bearish trends, as bullish investors accumulated over $6 billion worth of ADA tokens on Christmas Day.
This substantial buying activity highlights growing confidence among market participants, even as Cardano’s price remains below the $1 mark.
Christmas Day ADA Accumulation
Cardano began Christmas trading at $0.93 but faced a bearish spell, briefly dropping to $0.91. Bulls mounted a defense, pushing the price to $0.94 before encountering a mild pullback.
Despite this, data from IntoTheBlock reveals that bullish investors purchased 6.83 billion ADA tokens on Christmas Day, valued at $6.352 billion.
Bull vs. Bear Activity
- Bulls: Represented those who bought at least 1% of ADA’s daily trading volume, recording a two-week high in net inflows.
- Bears: Sold 6.82 billion ADA, marking their lowest volume in over a year.
- Excess Demand: The bulls outpaced bears by 7.53 million ADA ($7 million), the highest demand since Dec. 10, when ADA rallied toward $1.
Table: Christmas Day Cardano Stats
| Metric | Value | Implication |
|---|---|---|
| Bull Purchases | 6.83 billion ADA | Highlights strong confidence |
| Bear Sales | 6.82 billion ADA | Lowest volume in a year |
| Excess Demand | 7.53 million ADA | Signals potential recovery |
Signs of Recovery
Market conditions during the festive season typically lead to reduced trading activity, and Cardano’s large transaction volume hit a near two-month low of 4,330 on Christmas Day. Despite this, analysts see signs of a rebound.
Cardano’s Commodity Channel Index (CCI) has dropped to negative 91, and its Relative Strength Index (RSI) has entered oversold territory. Both indicators suggest a recovery could be imminent.
Cardano’s Road to $1
For ADA to regain bullish momentum, it must overcome critical resistance levels:
- Immediate Target: Reclaim the $1 level by surpassing the 21-day Exponential Moving Average (EMA) at $1.014.
- Long-Term Bull Market: Analyst Flash predicts that ADA’s bull market will officially start above $1.25.
Challenges Ahead
Cardano currently trades at $0.8705, down 5.07% today, and remains range-bound. Breaking free will require sustained buying momentum and broader market recovery.
Favorable Technical Indicators
Despite the price drop, Cardano’s long-term technicals remain promising:
- Oversold Indicators: CCI and RSI suggest the asset is undervalued, increasing the likelihood of a bounce.
- Market Sentiment: As trading activity picks up post-holiday season, the bulls may capitalize on existing excess demand to push ADA higher.
Cardano’s impressive buying activity on Christmas Day underscores investor confidence in its long-term potential. While the $1 milestone remains a challenge, favorable technical indicators and strong demand could set the stage for a recovery. ADA investors should monitor key resistance levels and market sentiment as the asset eyes its next big move.
