Cardano Bulls Bought $6B Worth of ADA on Christmas Day as Price Eyes $1

Cardano bulls accumulated a substantial amount of ADA tokens on Christmas day amid the recovery push from the broader crypto market.

For context, Cardano began Christmas with a $0.93 price but eventually witnessed a bearish spell hours into the day, dropping to retest the $0.91 price support. However, the bulls mounted an impressive defense, triggering a spike to knock at the $0.94 mark.

This rebound was rather short-lived, resulting in a mild pullback and subsequent consolidation. Notably, ADA aimed to build on a recent uptrend, which began on Dec. 23 with an impressive 4.8% intraday close. Nonetheless, the bears snuffed this momentum on Christmas day.

Cardano Bulls Buy 6B+ ADA

Despite this, Cardano bulls appear to have increased their appetite. Data from IntoTheBlock shows that these investors procured about 6.83 billion ADA tokens worth $6.352 billion on Christmas Day.

For context, bulls refer to market participants who purchased at least 1% of Cardano’s trading volume over a 24-hour period. While the latest purchase volume represented a drop from previous highs, overall net inflows marked an impressive two-week high.

Particularly, besides the bulls, Cardano bears saw a more substantial drop in their sales volume. Notably, these addresses sold 6.82 billion ADA on Christmas Day, their lowest volume in over a year.

Interestingly, this bull-bear volume led to an excess demand of 7.53 million Cardano (about $7 million) yesterday, representing the highest demand ADA has witnessed since Dec. 10, which previously led to a three-day price uptick to $1.

As the crypto market shows signs of a potential recovery, a new trend of excess demand could grant the bulls enough strength to push Cardano prices above the current range-bound phase. However, this might not occur until the festivities are over.

For context, the market is relatively quiet during Yuletide periods as most market participants turn their focus away from trading. This reflects in Cardano’s large transaction volume, which slumped to a near two-month low of 4,330 transactions on Christmas Day.

Cardano Eyes $1

Despite this, analysts expect the recovery to trigger Cardano’s next leg up. Flash, a Bitcoin and crypto trader, asserted on Christmas Eve that Cardano is on the verge of properly starting its own bull market, which he believes could begin when ADA recovers the $1.25 level.

#Cardano $Ada

Real bullmarket starts above $1.25 💪 pic.twitter.com/VxQPU31c2C

— FLASH (@THEFLASHTRADING) December 24, 2024

Meanwhile, at press time, Cardano trades for $0.8705, down 5.07% today as it corrects all the gains from the most recent rebound. ADA’s chances of a full-blown recovery hinge on its ability to reclaim $1, which would require a push above the 21-day EMA at $1.014.

Nonetheless, despite the bearish pressure, its technicals remain favorable. For instance, Cardano’s Commodity Channel Index (CCI) has dropped to negative 91, suggesting it might be oversold. Data from CryptoQuant also confirms that RSI has entered the oversold region, and a recovery is imminent.