3 bullish signs point to a possible ADA bull run

TL;DR

ADA price rose to nearly $0.40, potentially driven by positive metrics such as an increase in large transactions. However, its RSI recently rose to 81, suggesting overbought conditions and a possible correction despite analysts’ predictions of further rallies. The resurgence of the ADA

Cardano’s ADA has been among the top performing digital assets in the past 24 hours, with its price hitting a one-month high of over $0.39. Its market capitalization rose to $14 billion (and has fallen back a bit since then), making it the 11th largest cryptocurrency.

ADA price, Source: CoinGecko

Its resurgence aligns with three important metrics that have been on the rise. The first (somewhat expected) is the “In the Money” indicator, which according to IntoTheBlock is up 10.5% on a daily basis. It measures the change in ADA investors who are currently sitting on paper profits. As of now, 31% of them are in the green, while 66% are under water.

The statistics looked much worse during the crypto market crash in early August. The price of ADA then plummeted to a seven-month low of $0.27, while only 0.35% of its holders saw some profit from their initial investments.

The second bullish factor is the large transaction volume (where each ADA transaction on the chain exceeds $100,000). The figure reached $6.6 billion on September 25, representing a 12% increase in 24 hours.

Last but not least, we will focus on ADA’s NVT (Network Value Per Transaction) ratio. The metric is currently around 2.7, which is considered low. It indicates that the token is undervalued and therefore ready for a potential recovery.

A popular analyst who recently predicted another bomb for Cardano’s native token is user X CryptoBullet. The trader expects the price to hit a lower high of around $1.80 next year. However, they assumed it could head south to around $0.15 later.

The bassist element

Conversely, ADA’s Relative Strength Index (RSI) suggests that the asset could be poised for an imminent correction. The analysis tool measures the change and speed of price movements, ranging from 0 to 100.

Readings above 70 indicate that the token could be overbought, while anything below 30 is considered bullish as it indicates oversold conditions. The RSI is currently around 70, briefly rising to 81 on September 24th.

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