Popular cryptocurrency exchange Kraken has announced that the price of Cardano (ADA) has risen dramatically amid the boom in daily crypto transactions. Cryptocurrency exchange Kraken says the current price action according to Cardano’s (ADA) daily trading could be a bullish indicator for the sixth-largest cryptocurrency by market cap. Detailed information on the subject and reasons for the rise in Cardano (ADA) Cryptokoin.com’in.
Reasons for the rise in Cardano (ADA) price
Kraken, one of the oldest crypto money exchanges in the market, is among the exchanges that people who have been trading cryptocurrencies for many years. In a recent new report, Kraken says that although ADA’s price is strongly correlated with the volume of network activity, that has not been the case since late 2021, when Cardano’s price failed to keep up with the increase in its day-to-day transactions. The explanation on this issue in the report is as follows:
Throughout 2020 and 2021, there was a strong correlation between ADA price action and daily transactions. This relationship continued until November 2021, when we saw the price of ADA drop while daily trading saw a slight increase.
Renowned cryptocurrency exchange Kraken says there was a “buy deception, sell the news” pattern that characterizes the market activity that led to Cardano’s updates, but the current correlation between ADA’s price and trading volume indicates diminishing hype on the network. Renowned cryptocurrency exchange Kraken says that ADA is going through a correction phase and is still on growth path as decentralized applications (DApps) are launched on the network. The explanation on the subject in the report of the crypto money exchange Kraken is as follows:
This could be a bullish indication for ADA that the asset is in a correction cycle due to the drop in hype rather than the exit from the network. This is particularly important to consider as the long-awaited launch of DApps on the network begins to roll out.
At the time of writing, ADA was trading at $1.05. As we have reported before, Cardano has been under significant purchasing pressure in recent days. The data showed a significant increase in interest from the market.
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