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.
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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.
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