Why is Cardano (ADA) Price Up Today?

Why is Cardano (ADA) Price Up Today?


Why is Cardano (ADA) Price Up Today?
Why is Cardano Price Up Today?

YEREVAN (CoinChapter.com) — Cardano (ADA) has witnessed a notable price surge in recent days, up 20% since Dec 1 to $0.44. This uptick comes amid a flurry of developments and positive market sentiments that hint at a bullish continuation ahead.

Why is Cardano’s price up?

Cardano ADA price likely benefitted from the Bitcoin fever. In detail, the leading cryptocurrency jumped to its 20-month high of $44,000, taking the altcoin market along for the ride.

Cardano’s price movement doesn’t exist in a vacuum. The crypto market often moves in tandem, and ADA’s uptick followed Bitcoin’s rally. As investors’ confidence grows with the market’s upward trend, so does their interest in Cardano’s potential.

ADA Inflows at $0.1M

Investors continued to park their cash with crypto funds. On Dec. 5, asset manager CoinShares reported another $176 million of net inflows the previous week, continuing a 10-week streak totaling $1.76 billion. This steady inflow of investment into crypto funds indicates a sustained interest in digital assets, which is why is Cardano’s price up today, and has been in the previous seven days.

CoinShares report estimated weekly Cardano inflows at $0.1 million, which is modest compared to Bitcoin and Ethereum. However, albeit modest, the inflow brought the overall year-to-date inflow to $40 million.

Cardano ADA price
Cardano Inflow. Source: CoinShares

On-Chain Metrics Bullish

ADA’s climb is also powered by the high levels of transaction volumes. Data from the on-chain tracker Messari confirms the assumption, fueling bullish expectations. ADA transaction volume jumped to a 7-month high of $12.3 billion.

Notably, high transaction volumes do not automatically assume a bullish bias. However, combined with the green ADA candles, it could mean high investor interest, partially answering the question of why is Cardano’s price up today.

why is cardano up
Cardano Transaction Volume. Source: Messari

Additionally, Cardano addresses doubled down on adding to their purses. According to Messari, wallets with various coin counts, i.e., retail investors and whales alike, increased their ADA holdings.

However, the rise in whale count is specifically remarkable, as it tends to sway the markets in a certain direction. Generally, whale ranks tend to multiply when they see more price appreciation incoming. Conversely, the number of large whales declines, as they sell at the perceived top. Thus, active growth in whale numbers suggests a possible bullish continuation for ADA price.

Cardano ADA
ADA whale addresses. Source: Messari


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