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Several on-chain metrtics demonstrate the growing optimism about Cardano (ADA). Concurrently, the cryptocurrency has managed to break through a significant resistance level against the backdrop of a bullish market attitude.
Not only is Cardano seeing a boost in momentum, but top altcoins are also feeling the effects. Strong positions held by Bitcoin and Ethereum above $40,000 and $2,200, respectively, add to the overall favorable market dynamics.
Cardano Network Transactions Rise
Cardano has been steadily rising, and expert cryptocurrency trader Ali Martinez pointed out that the cryptocurrency’s consolidation in the middle of November resembled that of the 2018–2022 phase. This suggests that Cardano may overcome the $0.45 resistance and reach $0.75 by the end of December.
Cardano has had a pivotal three months, and what’s to come could be even more so. This is due to the fact that the network has seen numerous transactions totaling more over $100,000. Martinez claims that the spike in transactions indicates a rise in institutional interest in ADA.
#Cardano | In the last three months, there’s been a significant increase in $ADA transactions over $100,000, reaching new highs consistently.
This surge points to growing interest in #ADA from institutional players and whales, which is usually a precursor to price spikes. pic.twitter.com/APczM2PGxM
— Ali (@ali_charts) December 4, 2023
Meanwhile, there’s another interesting development happening of late. According to the most recent data, once Bitcoin broke above the $41,000 mark, there was a bullish rebound that saw the percentage of lucrative Cardano addresses rise to a two-year high of 42%, or roughly 1.76 million addresses.
Source: IntoTheBlock
Based on IntoTheBlock’s examination, this increase in profitability not only represents a transient spike but also highlights ADA’s long-term potential. This encouraging development contributes to the general sentiment among investors by fostering a sense of assurance and faith in cryptocurrencies.
ADAUSD currently trading at $0.399 territory on the daily chart: TradingView.com
Whales’ Influence On ADA’s Price And Sentiment
And speaking of sentiment, Martinez emphasized the possible influence on the price of ADA while pointing out that whales have also been participating in the recent large-scale transactions on the Cardano network. The expert noted that actions such as these might be essential to a significant rise in the price of ADA.
Source: IntoTheBlock
The recent announcement of 150 initiatives and the ongoing development of 1,304 projects demonstrate a thriving ecosystem. Another explanation for Cardano’s high transaction growth could be this.
The remarkable production of 9.1 million native tokens demonstrates the wide range of customization possibilities on Cardano. A further demonstration of the versatile utility of Cardano’s asset generation capabilities is the establishment of 81,447 token policies.
At the time of writing, ADA was trading at $0.399, up 2.3% in the last 24 hours, and down 7.1% in the last seven weeks, data by Coingecko shows.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Shutterstock
