Please enter CoinGecko Free Api Key to get this plugin works.

Why is ADA’s price drop bullish despite an increase in daily transactions?

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.

Leave a Comment

Your email address will not be published. Required fields are marked *

Facebook
Twitter
Telegram

Recent Posts

Follow Us