Cardano Bulls Outpace Bears: $6B ADA Acquisition Sparks Hope

Cardano bulls displayed significant buying power on Christmas Day, acquiring $6.35 billion worth of ADA tokens. This accumulation occurred amid a broader crypto market recovery and reflects a notable appetite for the asset despite recent bearish trends.

Cardano started Christmas trading at $0.93 but faced a quick bearish downturn, retesting the $0.91 support level. However, bulls quickly defended this level, pushing the price to $0.94. Despite this brief rally, ADA faced a mild pullback and entered a consolidation phase. This movement followed a 4.8% intraday gain on December 23, showcasing a broader uptrend. However, bearish pressures stalled further momentum on Christmas Day.

Bullish Activity Drives Demand

Data from IntoTheBlock revealed that bulls purchased 6.83 billion ADA tokens on Christmas Day, equating to over 1% of the trading volume. This marked a two-week high for net inflows, despite being lower than previous buying peaks.

_{Source: IntoTheBlock}

Interestingly, bear activity significantly dropped, with only 6.82 billion ADA sold—their lowest volume in over a year. This shift in demand resulted in a net excess of 7.53 million ADA, valued at approximately $7 million. This represents the strongest demand for ADA since December 10, which previously sparked a price increase to $1.

Quiet Market Dampens Transactions

The ongoing festive period contributed to reduced trading activity. Cardano’s large transaction volume fell to a two-month low of 4,330 transactions on Christmas Day, reflecting traders’ limited engagement during the holiday.

_{Source: CoinMarketCap}

At press time, Cardano trades at $0.8705, down 5.07%, erasing its recent gains. Analysts suggest ADA’s recovery depends on reclaiming $1, which requires breaking above the 21-day EMA at $1.014.

Despite bearish pressure, technical indicators favor recovery. The Commodity Channel Index (CCI) dropped to -91, signaling oversold conditions. Similarly, CryptoQuant data shows the Relative Strength Index (RSI) has also entered oversold territory, indicating potential for an imminent rebound.

Crypto trader Flash predicts Cardano’s bull market could begin when ADA surpasses $1.25. For now, bulls remain focused on regaining critical resistance levels to sustain upward momentum.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.