ADA’s price was not sparred during the Monday crash as the asset plummeted below $1 after finally overtaking that level during the weekend.
However, an important metric related to the blockchain behind the token suggests that ADA’s rally could be far from being over during this bull cycle.
The spectacular run for Cardano’s native token started a few weeks back when IOG founder Charles Hoskinson said he would be working alongside the Trump administration to establish more favorable and comprehensive regulations around the crypto industry in 2025.
His statement had an immediate and dramatic effect for ADA’s price, which doubled within a few days to over $0.6. Hoskinson made another big hint about a potential collaboration with Elon Musk’s SpaceX a week later, and ADA went on the run again.
The culmination came on Saturday morning when the asset exploded by over 20% within 24 hours and shot up to its highest price level in more than two years of $1.15.
However, this is where things started to turn around. In the following days, ADA lost the $1 level and slumped to $0.95 during yesterday’s market-wide crash, thus losing 18% of value since Saturday’s peak.
While such corrections are to be expected during massive bull runs in the ever-volatile crypto market, ADA might reverse its trajectory once again soon and head further north. This is because of the growing network adoption, which has seen a substantial increase in the daily active addresses, as shown by IntoTheBlock data.
The metric showcases that users are more and more inclined to use the blockchain, which typically leads to price increases for the underlying asset. The graph below demonstrates that the DAAs have shot up in the past few weeks to a 2024 top.
$ADA finally reclaimed the $1 level this weekend, and while price is consolidating now, network growth is surging.
The number of new user addresses hit its highest levels since June 2023. Is this the beginning of a larger breakout? pic.twitter.com/HzTIrenplC
— IntoTheBlock (@intotheblock) November 25, 2024
The post Cardano (ADA) Plunges Below $1 But Network Growth Indicates Larger Breakout Soon (ITB) appeared first on CryptoPotato.
