Evaluating the reasons behind Cardano’s January 2023 bull rally

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  • Cardano is back in the top 10 tokens by trading volume among the 4000 biggest BSC whales.
  • The price of ADA has increased over 50% in the last 30 days.

The Cardano Foundation recently revealed its statistics for the month of January Cardano [ADA]. According to the official tweet, there has been an increase in transactions using smart contracts and metadata.

Among all transactions, 31% were smart contracts, while 23% were metadata without smart contracts. Over the past 30 days, native tokens have increased by more than 3%.

Not only that, but the number of Plutus wallets and scripts also increased by 1.72% and 6.08%, respectively.

Additionally, whales have recently shown interest in Cardano. WhaleStats, a popular Twitter tool that posts updates on whale activity revealed that the ADA was in list of the top 10 cryptocurrencies by trading volume among the top 4000 largest BSC whales.

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What was the ADA like?

2023 started on a great note for ADA as its price increased by more than 50% in the last month. According CoinMarketCapat the time of writing, it was trading at $0.3998 with a market capitalization of over $13.8 billion.

ODAHis daily chart also revealed several interesting facts. For example, despite recording gains of more than 50%, the exponential moving average (EMA) ribbon revealed that bears led the market for most of the weeks in January.

The bulls gained the upper hand on January 13 as the data pointed to a bullish crossover. Surprisingly, the MACD has something else to say as it revealed that both sides had their share of market advantage.

ODAThe Relative Strength Index (RSI) during the first days of this year remained quite low and even entered an oversold position. Following this, it regained momentum and rose significantly as the price of ADA rose.

Source: TradingView

Reading of Cardano [ADA] Price Prediction 2023-24

The metrics in the game

Cardano’s performance on the metrics front has been quite dynamic. ADA’s MVRV ratio increased significantly, thanks to the bull run.

In the last month, ODA Developers are stepping up their game with new updates and partnerships. This was also shown by looking at the development activity of the network, which saw an increase.

The number of daily active addresses has remained stable, but has increased in recent days. In contrast, ADA speed remained relatively low over the past month, which was a negative sign.

However, in recent days the speed has picked up. Unusually, while the price of ADA rose, the daily volume of on-chain transactions in profits recorded a decline.

Source: Santiment

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