Cardano's ADA Hits Monthly High Amid Strong Market Metrics
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Positive Metrics Driving ADA’s Growth
Several key metrics have contributed to ADA’s price surge. The “In the Money” indicator, which tracks the number of investors in profit, rose by 10.5%. Currently, 31% of ADA holders are in profit, a significant improvement from the early August crash when only 0.35% of holders were in the green.
Additionally, large transaction volumes, defined as transactions exceeding $100,000, saw a sharp increase. On September 25, ADA’s transaction volume reached $6.6 billion, up 12% in just 24 hours. This growth indicates rising interest from institutional investors or large-scale traders.
Another bullish signal comes from ADA’s low NVT (Network Value to Transactions) ratio, which currently sits at 2.7. A low NVT suggests that ADA is undervalued and could be poised for further growth.
Potential Correction Looming
Despite these positive trends, ADA's Relative Strength Index (RSI) indicates that the asset may face a correction soon. The RSI, a tool that measures price momentum, spiked to 81 on September 24, signaling overbought conditions. Typically, an RSI above 70 suggests that a price pullback could be imminent.
Analysts remain divided on ADA's future. While some predict further growth, potentially reaching $1.80 in 2024, others warn that a correction could send the token back down to around $0.15.