Cardano (ADA) Falls Below $1, But Network Growth Points To Bigger Break Soon (ITB)

ADA’s price did not soar during Monday’s decline, as the asset fell below $1 after finally breaking above that level over the weekend.

However, an important blockchain-related metric behind the token suggests that ADA’s rally may be far from over during this bullish cycle.

The spectacular run of Cardano’s native token began a few weeks ago when IOG founder Charles Hoskinson said he would work together with the Trump administration to establish more favorable and comprehensive regulations around the crypto industry by 2025 .

His statement had an immediate and dramatic effect on the price of ADA, which doubled in a few days to over $0.6. Hoskinson dropped another big hint about a possible collaboration with Elon Musk’s SpaceX a week later, and ADA ran away again.

The culmination came on Saturday morning when the asset exploded more than 20% in 24 hours and soared to its highest price level in more than two years of $1.15.

However, this is where things started to change. In the following days, ADA missed the $1 level and fell to $0.95 during yesterday’s market crash, thus losing 18% of its value from Saturday’s peak.

ADAUSD. Source: TradingView

While these corrections should be expected during massive bull runs in the ever-volatile crypto market, ADA could soon reverse its trajectory again and head further north. This is due to the growing adoption of the network, which has seen a substantial increase in daily active addresses, as shown by data from IntoTheBlock.

The metric shows that users are increasingly inclined to use the blockchain, which usually leads to price increases for the underlying asset. The chart below shows that DAAs have soared in recent weeks to the 2024 high.

$ADA it finally regained the $1 level this weekend and while the price is consolidating now, the growth of the network is increasing.

The number of new user addresses reached its highest levels since June 2023. Is this the start of a bigger breakout? pic.twitter.com/HzTIrenplC

— IntoTheBlock (@intotheblock) November 25, 2024

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