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Assessing Reasons Behind Cardano’s Bull Rally in January 2023

Cardano [ADA] statistics for the month of January were recently disclosed by the Cardano foundation. According to the official tweet, the number of transactions including smart contracts and metadata has increased.

31% of all transactions involved smart contracts, compared to 23% of metadata without smart contracts. Over the past 30 days, the value of native tokens has climbed by over 3%.

In addition, the number of wallets and Plutus scripts increased by 1.72 percent and 6.08 percent, respectively.

Moreover, whales have recently shown an interest in Cardano. WhaleStats, a well-known Twitter account that gives information about whale activity, indicated that ADA was among the top 10 cryptocurrencies by trading volume among the top 4000 largest BSC whales.

The first month of 2023 began on a positive note for ADA as its price increased by more than 50 percent. According to CoinMarketCap, it was trading at $0.3998 with a market capitalization of nearly $13.8 billion at the time of writing.

The daily ADA chart also highlighted a number of intriguing events. For instance, the Exponential Moving Average (EMA) Ribbon demonstrated that bears led the market for the majority of January’s weeks despite achieving gains of over 50%.

The bulls grabbed the upper hand on January 13 due to a bullish crossover in the data. Surprisingly, the MACD reveals that both sides held a portion of the market advantage.

During the first few weeks of this year, ADA’s Relative Strength Index (RSI) remained relatively low and even hit an oversold condition. Then, as the price of ADA grew, it gained pace and increased dramatically.

The metric performance of Cardano was highly volatile. ADA’s MVRV Ratio grew significantly as a result of the bull run.

With new improvements and partnerships, ADA developers have stepped up their game over the past month. This was also apparent when examining the network’s development activities, which increased.

Until the previous several days, the number of daily active addresses stayed constant, but it skyrocketed. In contrast, ADA’s velocity has been quite low over the past month, an indication of weakness.

However, in recent days the velocity has increased. Unusually, while the price of ADA climbed, its daily on-chain profit transaction volume decreased.

 

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