Cardano [ADA] Sees 44% Rally, Momentum Indicators Show Increased Accumulation

• The price of Cardano [ADA] has returned to its pre-FTX collapse level, having increased by 44% since the beginning of the year.
• The coin has seen increased accumulation since the 2023 trading year commenced, with momentum indicators pegged at overbought highs.
• The asset’s On-balance volume (OBV) is also in an uptrend, suggesting that buying pressure is more significant than selling pressure.

The cryptocurrency market has been on a bull run since the start of the year, with many coins rallying significantly in value. One of the leading layer 1 coins, Cardano [ADA], has seen its price return to pre-FTX collapse levels, having increased by 44% since the beginning of the year.

Coin accumulation has also rallied significantly in the last three weeks, with ADA trading at the $0.36 price level during the intraday trading session on 21 January. This marks the first time the coin has reached this level since the fallout of FTX in early November 2022. ADA closed the 2022 trading year at $0.24, having declined by 33% since FTX collapsed.

To gauge the strength of the coin’s current rally, momentum indicators have been observed. At the time of writing, ADA had seen its Relative Strength Index (RSI) and Money Flow Index (MFI) pegged at overbought highs of 73.29 and 76.29 respectively. This gradual spike in these indicators reveals that ADA has seen increased accumulation since the 2023 trading year commenced.

The asset’s On-balance volume (OBV) has also been noted to be in an uptrend. At the time of writing, it was spotted at 43.517 billion, having gone up by 5% since the year started. An increase in an asset’s OBV suggests that buying pressure is more significant than selling pressure, and that more volume is being traded in the market.

As the cryptocurrency market continues to rally, it remains to be seen how ADA will perform in the long run. Nevertheless, its current rally indicates that more investors are taking a bullish stance on the coin, and are optimistic about its future prospects.