The network activity and holding time of Cardano (ADA) is increasing, indicating an upcoming bullish trend.

The price of Cardano has increased by nearly 10% over the past week amid a broader market recovery. This bullish trend is driven by increasing network activity of Cardano and a long term holding trend, indicating growing investor confidence.

With the larger market in a recovery phase and strong on-chain fundamentals, the current setup of ADA indicates the potential for sustainable bullish momentum.

The accumulation of ADA increases as traders show strong confidence

The demand for ADA has surged in the past week, reflected by a stable increase in the number of daily active addresses on the Cardano network. According to IntoTheBlock, this figure has risen by 12% over the past seven days, indicating a gradual increase in demand for this Layer-1 coin.

This trend is a positive signal, as it highlights the increasing interest of investors in ADA and may drive its sustainable bullish rally.

Moreover, the new demand for this altcoin has also increased. According to IntoTheBlock, the number of new addresses on the Cardano network has increased by 5% during the review period.

When ADA witnesses a gradual increase in new demand like this, it indicates the entry of new investors or traders into the market. This leads to higher trading volume and liquidity, thereby pushing the coin price up.

Furthermore, ADA investors have increased their holding time, indicating that the bullish momentum for this altcoin is growing. According to IntoTheBlock, the holding time has increased by 78% in the past week.

The holding period of an asset measures the average time that coins/tokens are held before being sold or transferred. This bullish trend marks the accumulation phase of Cardano, with traders less likely to sell.

This reflects the strong confidence of investors, as ADA investors choose to hold their coins instead of selling. Additionally, it may help reduce selling pressure in the ADA market, pushing its value up in the short term.

ADA investors expect higher profits

ADA is trading at 0.76 USD at the time of writing, up 4% in the past day. On the daily chart, the Relative Strength Index (RSI) of the coin is trending upwards at 52.11, confirming buying activity.

The RSI measures the overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating that the asset is overbought and likely to fall. Conversely, values below 30 indicate that the asset is oversold and likely to recover.

At 52.11 and rising, the RSI index of ADA indicates that bullish momentum is strengthening as buying pressure increases. If accumulation continues, the coin's price could reach 0.97 USD.

However, if profit-taking begins, this bullish forecast will be invalidated. In that case, the price of ADA may drop to 0.64 USD.

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