The Cardano price has shown a solid performance over the past week, soaring by an impressive 48% in the last seven days. This bullish momentum has pushed the cryptocurrency to reclaim the $0.6 level for the first time in more than a year.
However, the price has been experiencing a correction since reaching the multi-month high. As of this writing, the ADA token is down by roughly 6.5% in the past 24 hours. This has left many investors with only one question – is the altcoin’s price rally over?
Behind The ADA Rally – The Main Drivers
On Saturday, December 9, the Cardano price climbed to $0.63, its highest level since June 2022. A look at various on-chain parameters and data offered insight into the catalyst of this recent price surge.
A recent Santiment report has described the growing trading volume, weighted sentiment, and social dominance as some of the major drivers of ADA’s price in the past few days. The blockchain analytics platform reported that the altcoin’s volume, sentiment, and discussion rate are at the highest levels of 2023.
Cardano volume, sentiment, and discussion reach 2023 peak | Source: Santiment/X
Specifically, the analytics platform mentioned that Cardano is enjoying renewed interest from market participants and has reentered the crypto crowd’s consciousness. According to data provided by Santiment, 4% of all crypto discussions on Saturday were related to the ADA token.
Santiment also noted that FOMO (Fear of missing out) levels surrounding the Cardano token are elevated at the moment, and the altcoin is “clearly making up for the lost time.”
Is The Cardano Price Rally Over?
A broader look at Cardano’s price action suggests that the altcoin has been on a good run for longer than a few days. According to CoinGecko data, the cryptocurrency has witnessed a 56% price increase in the past month.
Prominent crypto analyst Ali Martinez recently sounded the sell alarm for the ADA token. In a post on the X platform, the analyst said bearish signals indicating a potential pullback of one to four candlesticks have emerged on the 3-day and 1-day charts.
Watch out! ⚠️ Sell signals have emerged on both the 3-day and 1-day $ADA charts, suggesting a potential correction of one to four candlesticks.
This may just be a short-term pullback before #Cardano resumes its uptrend! pic.twitter.com/t1e1aQLotw
— Ali (@ali_charts) December 9, 2023
However, Martinez noted that this price correction may occur in the short term, with the Cardano price likely to resume its uptrend. As of this writing, the ADA coin is valued at $0.5766, reflecting a 6.5% price decline in the past 24 hours.
Nevertheless, Cardano still ranks amongst the top 10 largest cryptocurrencies in the sector, with a market capitalization of $20.45 billion.
Cardano price witnesses sharp correction on the daily timeframe | Source: ADAUSDT chart on TradingView
Featured image from iStock, chart from TradingView