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Assessing reasons behind Cardano’s bull rally in January 2023

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Assessing reasons behind Cardano’s bull rally in January 2023

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  • 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. 

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.

Source: TradingView


Read Cardano’s [ADA] Price Prediction 2023-24


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. 

Source: Santiment

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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