Cardano ADA price diverges from network growth, here is the reason
According to data from CoinGecko, the price of Cardano (ADA) has increased 5.5% in the last 24 hours, 16.6% in seven days and 948% for the year. While this may sound impressive, Cardano’s price appears to be lagging behind its network growth.
Throughout 2021, the Cardano ecosystem achieved several significant milestones as the first three phases of the Cardano roadmap, Byron, Shelley and Goguen are now mostly deployed.
Earlier in March, Cardano announced the Mary hard fork which brought the availability of native tokens and a multi-asset ledger. Released in September 2021, the Alonzo hard fork brought programmability to Cardano. It also enabled the creation and deployment of smart contracts powered by Plutus, ushering in the Basho era.
These developments led to rapid network growth as community aggregators of Cardano projects estimate there are now about 274 projects in development or actively running on the network.
Transactions also exceeded 23 million in December, he said. Additionally, Cardano now has over 2.5 million native assets, of which over two million are non-fungible tokens (NFTs).
On-chain data offers this reason
The In/Out of the Money series of indicators from IntoTheBlock analytics group shows addresses and volume for a crypto asset based on their profits. These addresses are then separated into clusters to identify large buying zones based on blockchain data that are expected to act as price support or resistance.
According to In / Out of the Money, Cardano is facing a sell wall in the $ 1.46 to $ 1.63 range above where it is currently trading. A massive sell order, or collection of sell orders, has gone from the $ 1.46 level to the all-time high of $ 2.97.
On the contrary, huge support is seen around the $1.21 to $1.32 levels as nearly 562,000 addresses have placed buy orders around there. Cardano trades at $1.45 at press time.
