Cardano’s ADA token has seen huge gains recently, with its market cap growing 36% over the past two weeks according to crypto analytics firm Santiment. So what explains this massive pump in ADA’s price?
Santiment noted on Twitter that, as usual, observable onchain activity hinted at Cardano’s bullish price action before it occurred. Specifically, Cardano address activity and whale transactions reached their highest levels in over 3 months leading up to ADA’s surge.
Source: Santiment – Start using it today
More addresses interacting on the Cardano blockchain reflects organic growth in platform usage and adoption. Meanwhile, a spike in large transactions from whale holders suggests accumulated buying pressure and confidence in ADA.
Together, these onchain data points of increased network activity among regular users and whales provide the fundamental backdrop to fuel a rapid rise in price. More demand from new users and large holders coupled with constrained supply leads to upward pricing pressure.
Read also:
- Top Analyst Reveals Top 3 AI Cryptos with Huge Potentials that He’s Buying in November
- Top Analyst Sees XRP Exploding to $18.22 – Here’s His Ripple Outlook
- eTukTuk’s mission towards zero emission paves $TUK token
In summary, Cardano’s bullish onchain activity in terms of address growth and whale transactions preceded and predicted the massive 30%+ ADA price rally over the past two weeks. Tracking onchain metrics can provide invaluable signals for future price movements.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
