Cardano's On-Chain Metrics Signal Bullish Trend
Cardano (ADA), one of the top cryptocurrecies, has seen a significant uptick in its market valuation, posting a 9% increase over the last day and a 36% surge over the past two weeks. Data provided by analytics firm Santiment shows that the on-chain activities correlate with the bullish price action. It highlights a peak in ADA address activities and large transactions not seen in over three months.
It is worth noting that on-chain metrics are often considered predictors of future price moves.
Insight from holders and transactions
The holders' composition by the time held shows a strong long-term investor base, with 61% holding for over a year, according to on-chain data provided by IntoTheBlock.
Cardano's large holder concentration currently sits at 29%. Meanwhile, the vast majority of the holders (74%) are out of the money at current prices.
Alex DovbnyaIn terms of transaction volume, there has been a notable $22.56 billion worth of transactions exceeding $100,000 in the last 7 days.
The number of mega-whale addresses (those holding more than 1% of the circulating supply) remains modest at three, but the inflow and outflow movements among large holders have been dramatic, with a 30-day change showcasing an influx increase of over 1124% and an outflow increase of 209.14%.
Price performance and potential catalysts
Cardano's price performance has mirrored the optimistic on-chain data, with the cryptocurrency currently trading at $0.32, a modest 3.9% increase. The 24-hour trading volume stands at nearly $470 million.
The ongoing Cardano summit, a gathering of blockchain enthusiasts and developers, is eyed by the community as a potential bullish catalyst that could drive further positive sentiment, potentially reflecting in the cryptocurrency's price.
The highly expected approval of a spot Bitcoin exchange-traded fund (ETF) could prove to be yet another major bullish catalyst for the top cryptocurrency.
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