The price of Cardano has increased by 10% in the last 24 hours, riding on the wave of the overall growth of the crypto market, reaching a two-month high.
The sharp increase has lifted ADA to levels last seen in early March and revived bullish sentiment among spot and derivative market traders.
A 10% increase in Cardano has led to an increase in profitable supply.
On-chain data from Santiment indicates that the double-digit growth of Cardano has increased the percentage of its supply in profit. At the time of writing, approximately 74.14% of the circulating supply of ADA—equivalent to 26.91 billion tokens—is now held at a profit. When the profitable supply of an asset increases, it means that a significant portion of its circulating supply is now worth more than when it was purchased. Historically, an increase in profitable supply correlates with a recovery in accumulation and often indicates further upward momentum as market sentiments improve.
Additionally, in the derivatives market, the token's funding rate remains consistently positive, indicating that traders are increasingly taking long positions in anticipation of further profits. Currently, it stands at 0.0099%. The funding rate is a periodic payment between traders in perpetual futures contracts, designed to keep the contract price in line with the spot market.
When it is positive, as in this case, traders holding long positions pay those taking short positions, indicating a bullish sentiment and expectation of further price increases.
The growth of ADA is gaining momentum, but profit-taking could threaten support at $0.76.
With technical indicators signaling bullish sentiment and strengthening moods, ADA buyers have again taken control, at least for the moment. If buying pressure intensifies and bulls maintain dominance, ADA may continue its upward trend and rise to $0.84. However, once buyer exhaustion occurs and traders begin to lock in their rising profits, ADA may break through support at $0.76 and fall to $0.66. #BinanceSquare #Write2Earn #ADA #TradeStories #BTCBackto100K $ADA
