- The price of ADA has returned to the level it was in before the FTX crash.
- Coin accumulation has increased significantly over the past three weeks.
According to information from CoinMarketCapThe leading class 1 Cardano coin [ADA] It was trading at the $0.36 price level during intraday trading on January 21st, which is the first time the coin has reached this level since the FTX fallout.
ADA, like the rest of the general cryptocurrency market, suffered a significant drop in value after the unexpected crash of cryptocurrency exchange FTX in early November 2022. ADA ended the 2022 trading year at $0.24, having fallen 33% since the FTX crash.
Read Cardanos [ADA] Price forecast 2023-24
Can this gathering be held?
According to information from Queen Gekko, the global cryptocurrency market capitalization has increased by 21% since the beginning of the year. It shares a statistically significant positive correlation with Bitcoin [BTC]whose price has increased astronomically since the beginning of the year, ADA has also increased by 44%.
At its current price, ADA is in the overbought territory on the daily chart. Momentum indicators have been in an upward trend since the start of the year at the time of writing, correlated with overbought peaks.
The currency’s relative strength index stood at 73.29, while the money flow index (MFI) stood at 76.29. The gradual increase in these indicators revealed that ADA has witnessed an increasing accumulation since the beginning of the 2023 trading year.
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Likewise, the asset volume on balance (OBV) was on an upward trend at 43.517 billion, having increased by 5% since the beginning of the year.
When the OBV of an asset increases, it indicates that the buying pressure is more important than the selling pressure. It also means that higher volume is associated with higher prices, which indicates that buyers are more aggressive than sellers and that the price of the asset is likely to continue to grow.
Moreover, the buildup of ADA over the past 21 days has given buyers control of the daily market. The website of the alternate directional movement indicator confirmed this.
The trend indicator consists of the positive directional indicator (+DI), the negative directional indicator (-DI) and the average directional index (ADX). When +DI (green) is above -DI (red) and the Average Directional Index (ADX) is rising, it indicates that the uptrend is strong and is likely to continue. This observation is similar to the current market situation with the ADA.
At the time of publication, the ADX indicator for ADA (in yellow) is positioned at 50. With the market significantly bullish, an ADX reading above 50 indicates a strong uptrend, which may last for a few more days before a price reversal begins.