Cardano investors are once again optimistic about the future of ADA.
According to the team at Santiment, Cardano investors have accumulated an estimated 217.2 million ADA since the beginning of the year after dumping an estimated 568.4 million ADA in the last two months of 2022. The team at Santiment shared their observation through the following chart.
📈 #Cardano is enjoying a mini surge at this hour, and addresses holding between 1M to 100M $ADA may be a main validator to watch for a price breakout. After dumping 568.4M coins the final 2 months of 2022, they have added back 217.2M $ADA to start 2023. https://t.co/4aVmr641Lh pic.twitter.com/6mSVYKYfpY
— Santiment (@santimentfeed) January 6, 2023
Cardano Reclaims a Path within its Macro-Falling Wedge
Concerning price action, Cardano remains in bearish territory below the 50-day (white), 100-day (yellow), 200-day (green) and 200-week (red) moving averages, as seen in the one-day ADA/USDT chart below, courtesy of Tradingview.com.
Also, from the chart, it can be observed that Cardano had, in late December, dropped below a macro-falling wedge (blue) to set a local low of $0.2392 on December 30th. However, the digital asset has since reclaimed a path within the falling wedge known to break out to the upside, given the right conditions.
But before Cardano’s price action can be concluded as bullish, ADA/USDT needs to reclaim the 50-day moving average as support that also coincides with the $0.2953 resistance level.
Furthermore, Cardano’s daily MFI (green) and RSI (red) hint at reducing buyers’ interest, which could result in the digital asset once again falling below the wedge.
Therefore, a wait-and-see approach is recommended with Cardano as the rest of the crypto-verse warms up to the outlook of 2023.
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