Cardano Chain Activity Soars As ADA Rockets Above $0.8

Cardano (ADA) has seen a remarkable rally this month, mirroring and even outpacing the momentum of the broader crypto market.

After months of reduced performance, activity on the ADA chain has also picked up as it decoupled from the altcoin pack.

The chain’s metrics show significant growth

According to data from popular on-chain analytics platform Santiment, ADA transaction volume reached $52.26 billion this week, marking a seven-month high. Whale transactions, on the other hand, exceeded 8,900 for the second consecutive week and formed a 6-month peak.

Cardano is decoupled from the altcoin pack, nearly matching its 8-month high. Its price relation to Bitcoin is also approaching an eight-month high. The last time we saw this level of ADA transactions and whale volume was in June, just before a +26% breakout in the ADA/BTC pair. pic.twitter.com/8EmEAySWaq

— Santiment (@santimentfeed) November 20, 2024

This momentum coincides with the price ratio of ADA versus Bitcoin approaching an 8-month high. Historical trends show that similar peaks in transaction and whale activity last occurred in June, before a more than 26% increase in the ADA/BTC pair. This decoupling of the altcoin market suggests a strong resurgence, indicating even more bullish opportunities for ADA holders.

This increase in on-chain metrics is reflected in a strong increase in large ADA transactions. There has been a sharp increase in the large volume of ADA transactions, which have increased by 297% over the past two weeks. The data revealed that total volume reached $22.56 billion on November 18 as the price of ADA rose above $0.742. The 7-day high of $28.43 billion indicated increased interest from institutional players or large holders.

ADA is currently trading near $0.83 after rising nearly 153% since November 5, a watershed moment in US politics, when Donald Trump was elected president, a development widely seen as a turning point for the crypto market.

The ongoing bull run has generated bold predictions for ADA. As recently reported by CryptoPotato, a popular analyst, ‘CryptosRus’ predicted a target of $6 by the end of 2025 if the trends repeat themselves. However, the latest rally has not been without benefits.

Fix soon?

A separate analysis by IntoTheBlock revealed that the total number of Cardano addresses has decreased by 30,000 since November 5th. This drop suggests a wave of profit-taking by investors who capitalized on the rally, potentially cashing in after the token’s substantial upward move.

This activity could indicate short-term selling, although broader market sentiment remains bullish on the crypto asset’s growth.

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