Cardano on-chain activity soars as ADA surpasses $0.8

Cardano (ADA) has seen a remarkable rebound this month, mirroring and even surpassing broader crypto market dynamics.

After months of subdued performance, ADA’s on-chain activity also increased as it decoupled from the altcoin pack.

On-chain metrics show significant growth

According to data from popular on-chain analytics platform Santiment, ADA trading volume reached $52.26 billion this week, marking a 7-month high. Whale transactions, on the other hand, exceeded 8,900 for the second week in a row and were a 6-month high.

Cardano is decoupled from the altcoin pack, nearing its 8-month high. Its price/price ratio relative to Bitcoin is also approaching its highest level in 8 months. The last time we saw this level of ADA trading and whale volume was in June, just before a +26% explosion in the ADA/BTC pair. pic.twitter.com/8EmEAySWaq

– Santiment (@santimentfeed) November 20, 2024

This momentum coincides with ADA’s price ratio against Bitcoin near its 8-month high. Historical trends show that similar spikes in trading and whale activity last occurred in June, preceding a more than 26% increase in the ADA/BTC pair. This decoupling of the altcoin market suggests a strong resurgence, further indicating bullish opportunities for ADA holders.

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

Currently, ADA is trading near $0.83 after surging nearly 153% since November 5 – a pivotal moment in American politics – when Donald Trump was elected president, a development widely seen as a turning point for the crypto market.

The ongoing bull run has prompted some bold predictions for ADA. As recently reported CryptoPotatoa popular analyst from “CryptosRus” predicted a target of $6 by the end of 2025 if trends repeat. However, the latest recovery did not occur without profit taking.

Soon a correction?

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

Such activity could indicate short-term selling, even though overall market sentiment remains optimistic about the crypto asset’s growth.