Assessing reasons behind Cardano’s bull rally in January 2023
- Cardano was back in the top 10 tokens by trading volume among the 4000 biggest BSC whales.
- ADA’s price rallied by over 50% in the last 30 days.
Cardano foundation recently revealed January month’s stats of Cardano [ADA]. As per the official tweet, there has been an increase in transactions using smart contracts and metadata.
Among all the transactions, 31% were smart contracts, while 23% were metadata without smart contracts. During the last 30 days, native tokens have increased by more than 3%.
Not only that, but the number of wallets and Plutus scripts also went up by 1.72% and 6.08%, respectively.
January #Cardano on-chain stats 🚀
We continue to see increases in transactions using smart contracts and metadata 🙌#blockchain #BuildingOnCardano pic.twitter.com/fmvWNe1gCB
— Cardano Foundation (@Cardano_CF) February 2, 2023
Furthermore, the whales recently showed interest in Cardano. WhaleStats, a popular Twitter handle that posts updates related to whale activity revealed that ADA was on the list of the top 10 cryptos by trading volume among the top 4000 biggest BSC whales.
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How has ADA been?
2023 began on a great note for ADA as its price rallied by more than 50% in the last month. According to CoinMarketCap, at the time of writing, it was trading at $0.3998 with a market capitalization of over $13.8 billion.
ADA’s daily chart also revealed quite a few interesting happenings. For instance, despite registering over 50% gains, the Exponential Moving Average (EMA) Ribbon revealed that the bears were leading the market for most of the weeks in January.
The bulls gained the upper hand on 13 January as the data showed a bullish crossover. Surprisingly, the MACD has something else to say, as it revealed that both sides had their share of the market advantage.
ADA’s Relative Strength Index (RSI) during the early days of this year remained pretty low and even entered an oversold position. Following that, it gained momentum and increased significantly as the price of ADA rose.
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Metrics at play
Cardano’s performance on the metrics front was quite dynamic. ADA’s MVRV Ratio increased substantially, thanks to the bull run.
Over the last month, ADA developers have been stepping up their game with new updates and partnerships. This was also evident by looking at the network’s development activity, which registered an increase.
The number of daily active addresses remained consistent, but during the last few days, it spiked. On the contrary, ADA’s velocity remained relatively low over the last month, which was a negative signal.
However, during the last few days, the velocity went up. Unusually, while ADA’s price increased, its daily on-chain transaction volume in profit registered a decline.