AltCoin is not weak! Analyst: 'This coin' has already experienced a big pump of 50%, and is expected to pump another 35%?

BTC broke through the $90,000 mark this morning, reaching a high of $93,265 before falling back to $89,458 at the time of writing. CoinMarketCap's panic and greed index has entered the "extreme greed" zone in the past two days; the last time it was in this range was over six months ago when BTC reached its previous high of $73,777 in March. This indicates that investors are generally bullish on the future and is reflected in some communities.

Source: CoinMarketCap Greed and Fear Index

The market also drove a significant Fluctuation in the prices of some AltCoins, with Cardano ($ADA) experiencing a big pump for 5 consecutive days since election day (11/6), rising from $0.3335 to a high of $0.6599, a 97% Fluctuation, and had fallen to $0.5707 at the time of writing. Analysts at "BeInCrypto" pointed out that several indicators suggest that Cardano ($ADA) may be losing upward momentum, or potentially facing a reversal.

Cardano ($ADA) Average Directional Index

The average directional index (ADX) of $ADA is 45.02, which is lower than the previous two days' 70. A decrease in ADX usually indicates a weakening trend strength, and long positions may be losing momentum. Despite Cardano ($ADA) being in a rising trend, the decline in its ADX indicates a slowing pace of rise.

Note: ADX (Average Directional Index) is a technical indicator used to measure trend strength. When ADX is above 25, it indicates a strong price trend; below 20 means the price is weakening or in a consolidation phase.

Image source: "BeInCrypto" Cardano ADX indicator

Cardano（$ADA）Whale is coming home

Santiment data shows that from October to early November, the number of addresses holding 1,000,000 to 10,000,000 $ADA remained stable. However, from November 8th to the end of last week, the number of addresses in this range increased from 2,432 to 2,451 and then entered a stagnant phase.

Image source: "BeInCrypto" Cardano Whale Count

The reason for tracking WhaleAddress is that their buying and selling is sufficient to affect the currency price. Analysts believe that the increase in data last week indicates that Whales are accumulating Cardano ($ADA); the stagnation of the past two days implies that Cardano ($ADA) may experience a short consolidation period before the next major fluctuation comes.

Cardano ($ADA) may reach 'this point' in November?

Analysts say that the short-term EMA of $ADA is above the long-term EMA, indicating a rising trend in the past few days; however, $ADA has now fallen below the EMA20, suggesting that the bullish momentum may be weakening.

$ADA The recent price resistance is at $0.62 and $0.67, if broken, may pump further by 35%, reaching the high of $0.8 in March; otherwise, if the trend weakens, it may pullback to $0.47 or $0.41.

Image source: 'BeInCrypto' Cardano price analysis

Cardano on-chain data

Liquidity

Cardano on-chain Liquidity saw a big pump of 69.1% last week, and as of press time, the total Lock-up Position value (TVL) was 01928374656574839201. This big pump was mainly attributed to Cardano founder Charles Hoskinson revealing during a live stream that his company, Input Output, is preparing to establish a policy department with the goal of cooperating with the US government to promote the implementation of cryptocurrency-related legislation.

Image source: DefiLlama Cardano on-chain Liquidity

Another advantage of Liquidity on-chain is the integration of BTCCross-Chain Interaction bridge BitcoinOS by Cardano two weeks ago. This protocol can bring native BTC into the Cardano network and further connect the Cross-Chain Interaction channels of Merlin ($176 million) and BSquared ($253 million), two BTC-compatible chains, in the future.

Stablecoin circulation

In terms of stablecoin issuance, Cardano's market cap surged by 57.2% on October 22nd due to a significant increase in USDM issuance, reaching a market cap of $19.51 million at the time of writing. The highest market share is held by USDM ($7.52 million). Prior to this, the Cardano ecosystem only had access to four types of stablecoins: IUSD ($6.86 million), MyUSD ($2.29 million), DJED ($2.79 million), and RUSD ($0.038 million), which are based on algorithmic stability or over-collateralization (CDP). These types of stablecoins are often limited by higher risks and poorer user experiences, making it difficult for them to circulate in large quantities. Therefore, it is only after the issuance of USDM based on physical asset reserves that the Cardano ecosystem began to demonstrate growth potential.

Image source: DefiLlama Cardano various Stable Coin Market Cap

DeFi Event

It is worth noting that the on-chain activity of Cardano has indeed reached the highest level in the past three months last week with a series of positive news; its daily on-chain volume peaked at $12.9 million on November 10, and the daily active addresses reached 88,200. Subsequently, it is worth continuing to monitor the trend of on-chain data to judge whether the dominance of Cardano's ecosystem in the Decentralized Finance zone has significantly improved.

Image source: Artemis Terminal Cardano ecosystem activity

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. The responsibility for investment lies with the user.

'AltCoin is not weak! Analyst: 'This coin' has already experienced a big pump of 50%, and there is hope for another pump of 35%?' This article was first published in 'encryption city'.