- Cardano’s weekly report underlines healthy growth numbers.
- ADA Bulls Bought the Recent Dip, But Can They Sustain the Rally?
The Cardano [ADA] blockchain just released its latest weekly update and it offers some interesting insights into how the network worked. It can also provide a new perspective for ADA holders and enthusiasts.
Read Cardano (ADA) price forecast for 2023/2024
The Cardano update highlights robust technical developments taking place in the network. This includes continued core improvements to the underlying technology, smart contracts, portfolios and services. While all of those are important, investors are probably more interested in growth numbers.
According to the update, Cardano has launched 131 projects to date and is currently building 1,261 projects on its network. Moreover, it recently marked a milestone of 70 million transactions. In other words, the number of projects and the transaction milestone underline the positive growth.
But what does this mean for ADA’s short- and long-term performance? Such developments can boost investor confidence, potentially leading to more accumulation in the short term. However, ADA’s performance has more recently been determined by general market conditions.
Can ADA bulls sustain the current trajectory?
ADA started this week with a bearish leg, but managed to bounce back mid-week. It changed hands at $0.29 at the time of writing, representing a 33% increase from its lowest price in June.
Source: TradingView
The positive side of the RSI and the MFI confirms that there was sufficient accumulation, particularly in the second half of June, but not enough for a strong rebound. But Cardano’s continued focus on development and growth could benefit ADA especially in the long term. Speaking of development, Cardano’s development activity metric registered an upward trajectory over the past 2 weeks.
Source: Sentiment
In terms of visibility among investors, ADA’s measure of social dominance recorded healthy activity over the past 4 weeks. It ended June with the second largest spike in social dominance during Friday’s trading session.
A notable surge in volume accompanied the spike in social dominance, mirroring the bullish recovery of recent days. A strong increase in the MVRV ratio was observed in the second half of June. It confirms that there was clearly more accumulation over the past 2 weeks, hence the higher profitability recorded by the MVRV ratio.
Source: Sentiment
How much are 1,10,100 ADAs worth today
The latest volume spike represents the second largest spike in the past 4 weeks. However, it pales in comparison to ADA’s largest recorded volume during the month.
The correlation with the MVRV ratio suggests that whales were actively involved in the recent spike. It may also explain why ADA recovered quickly from some selling pressure in recent days.
