Despite a more than 5% decline over the past week and a 1% dip in the last 14 days, Cardano (ADA) has shown a strong rebound in the past 24 hours. As of the latest data, ADA is trading at $0.9921, signaling a positive shift in the market. Notably, the increase in daily active addresses highlights a surge in market participation, with diminishing concerns over large sell-offs.
Cardano’s Network Activity and Price Correlation
On-chain data from analyst Ali Martinez points to a robust Cardano network, with daily active addresses reaching over 50,800 as of January 20. Historical patterns reveal a clear link between price movements and network engagement. For instance, between January 4 and January 8, both active addresses and ADA’s price surged. This was followed by a price correction, mirroring a decline in network participation from January 9 to January 12.
However, both indicators rebounded from January 13 to January 19, signaling a renewed market interest. Although daily active addresses dipped to around 35,000 on Tuesday, the overall trend remains promising. IntoTheBlock data further validates this uptrend, with new addresses increasing by 4.79%, signaling an influx of new users, and active addresses rising by 11.99%, indicating heightened engagement with the network.
Shifting Ownership Trends and Market Sentiment
Ownership trends reveal an interesting shift in ADA’s investor base. While Cardano whale holdings have dropped by 1.68%, suggesting profit-taking or repositioning, retail adoption is on the rise. Retail investors have increased their positions by 0.72%, with overall investor accumulation growing by 1.60%. This surge in retail participation and investor confidence signals growing optimism for ADA’s future prospects.
Technical Patterns and the Bullish Outlook for ADA
Prominent trader Peter Brandt has weighed in on Cardano’s technical outlook, suggesting that the cryptocurrency may have completed its bearish phase. Brandt highlights a descending triangle pattern that led to a prolonged downtrend, but with a double-bottom formation in early 2023, ADA set the stage for a bullish trend. As ADA surpasses resistance levels, Brandt hints at the potential for a grand bull market, especially with an upcoming altcoin season.
Also Read: Cardano (ADA) Set for Major Breakout: Analysts Predict Strong Gains with Bullish Patterns
In conclusion, Cardano’s rising network activity and increasing investor confidence are pointing toward a positive future for ADA, with potential for significant gains ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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