Cryptocurrency trading For Cardano (ADA), Kraken believes the current price movement relative to its daily transactions could be a bullish indicator.
Cardano’s price has not been associated with the level of network activity since late 2021, according to a new study from Kraken. This is despite the fact that ADA’s price is significantly correlated with the volume of network activities.
Figure 13 shows a high association between ADA price movement and daily transactions in 2020 and 2021. In November 2021, the price of ADA began to decline although daily transactions increased slightly.
There is a “buy the hype, sell the news” pattern in the market activity leading up to Cardano’s upgrade upgrades, but the present link between ADA’s price and transaction volume implies a diminishing enthusiasm about Cardano.
As decentralised programmes (DApps) are launched on the network, the exchange claims that ADA is entering a corrective period and is still on pace for growth.
A decline in excitement rather than a network exodus could be a positive indicator for ADA that the asset is in a corrective cycle. Aside from this, it’s vital to keep in mind as DApps begin rolling out on the network.”
ADA is currently trading for $1.05.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.