On-Chain Data Suggests This Reason for Cardano (ADA) Price Action Despite Network Growth
As per CoinGecko information the The Cardano’s (ADA) price has increased by 5.5 percent over the last one day, 16.6% on a seven-day basis and 948 percent over the course of the year. Although this might seem impressive, the price of Cardano isn’t keeping pace with the growth of its network.
HUGE On Chain Growth in 2021! pic.twitter.com/SGzU14jabr
— Cardano Foundation (@CardanoStiftung) December 23, 2021
Through 2021 2021, the Cardano ecosystem reached several important milestones. The first three stages in the Cardano roadmap were completed. Byron, Shelley and Goguen are currently in use.
In the month of March Cardano revealed its Mary hard fork that brought native tokens as well as an asset ledger that can be used for multiple assets. The launch was in September 2021. the Alonzo hard fork added programming capabilities to Cardano. It also allowed for the creation and implementation of smart contracts powered by Plutus, bringing into the Basho era.
This have led to rapid growth of the network because community aggregators of Cardano projects estimate that there at present 274 projects under progress or currently being run on the network.
The number of transactions also surpassed 23,0 million during December the website declares. In addition, Cardano now has over 2.5 million native assets including more than 2 million of them as non-fungible coins (NFTs).
Data from the chain can provide this explanation.
The”In/Out” of Money series of indicators by the IntoTheBlock analytics group displays addresses and the volume of cryptocurrency assets in relation to their earnings. The addresses are further separated into clusters in order to pinpoint significant buying zones using blockchain data. These zones could serve as resistance or support for price.
According to In/Out of the money, Cardano faces a sell wall in the $1.46 -$1.63 area above where it is trading at the moment. A massive sell order or collection of sell order that are put in place starting at the $1.46 mark to the record-setting high of $2.97.
However, massive support is observed in those $1.21 up to $1.32 levels since nearly 562,000 addresses have made buy orders in that area. Cardano has traded at $1.45 as of press time.