Activity on ADA has increased dramatically, as seen by the sharp rise in major transactions. Within a day, an incredible 25 billion ADA were transmitted. The observed on-chain activity is consistent with the price action of ADA and warrants more investigation into the on-chain measures and their potential impact on the asset’s future.
Examining the on-chain data reveals a noticeable increase in the quantity of big transactions, which frequently indicate significant wallet transfers by institutional or whale players. Such moves may indicate either bullish or negative preparedness for future market events. In addition, the high amount of transactions—which reached a recent height of 27.67 billion ADA—confirms how intense this activity is.
In addition, ADA’s price chart tells a story that is tense. Following a downturn, ADA is making an effort to turn things around by teasing the 50-day EMA, which is presently around $0.5. However, a definitive breakthrough has not been made.
As of right now, ADA is trading just below this crucial EMA level; the question is if it can build up the required momentum to move over it. The next barrier that ADA could face, if it is successful, is around $0.55. This rise would be consistent with the increasing activity on the chain. On the other hand, ADA may retest the support area around $0.49, a recent low that might act as a launchpad for another upward push, if it is unable to advance above the 50 EMA.
With the present dynamics, the market’s increase in buying activity and on-chain activity will determine ADA’s destiny. Regretfully, the market is paused till it resumes its upward trajectory. Ideally, there won’t be a significant price decline when the market’s volatility and liquidity decline closer to the weekend.
