Cardano (ADA) Address Activity Spikes to 'Historically High” Levels, But Market Sentiment Remains Negative

NAIROBI (CoinChapter.com) — Cardano (ADA) has experienced a notable surge in address activity, marking “historically high” spikes, data from on-chain

Cardano (ADA) has experienced a notable surge in address activity, marking “historically high” spikes, data from on-chain analytics platform Santiment shows. Similar activity trends have also been observed in other cryptocurrencies, such as Quant and Holo.

A spike in address activity often indicates growing interest and participation in the network. More active users can lead to positive market sentiment, which may boost ADA demand and price appreciation.

However, these spikes in address activity may be driven by speculation, where traders expect a price pump due to upcoming events or rumors, leading to short-term price increases.

Market Prophit’s analysis reveals that sentiment toward Cardano (ADA) is largely negative among both general investors and institutional traders, with crowd sentiment registering at -0.28 and institutional sentiment even lower at -1.37.

As of press time, ADA/USD is trading at $0.3397, up 1.73% over the past 24 hours. Cardano’s 24-hour trading volume surged 46.59% to $236.6 million, reflecting a wave of trading interest. In contrast, Bitcoin and Ethereum have recorded losses of 5% and 6%, respectively, over the same period.

Meanwhile, the trading volume for ADA derivatives has increased sharply by 63.48%, reaching $312.11 million, while open interest has seen a modest rise of 1.35%, totaling $177.16 million.

The recent Chang hard fork was expected to boost Cardano’s value by introducing decentralized governance, but the price has only seen small gains. Cardano still ranks outside the top 10 by market cap, falling behind competitors like Dogecoin and Tron. ADA currently trades nearly 90% below its peak, reached during the 2021 Alonzo hard fork.

Analyst Predicts Cardano’s Potential Breakout to $1

Analyst ‘World of Charts’ identified a falling wedge pattern in Cardano’s chart, suggesting a potential breakout. If ADA successfully breaks out from this pattern, it could surge toward the $1 mark, demonstrating significant momentum.

Analyst Dan Gambardello supports this view by highlighting a bullish divergence in ADA’s trading against Bitcoin, observing higher lows on RSI and MACD despite the price hitting lower lows.

Gambardello compared ADA’s current chart setup to 2020, highlighting the potential for another rally based on historical patterns.

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