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Cardano (ADA) Price Analysis Shows NFTs Pushing Onchain Volumes, Records 75% Growth

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VOC, Voice of Crypto, ADA

The Cardano blockchain has been witnessing a tremendous increase in month-on-month transactions.

Recorded on October 19, Cardano was nearly clocking 98000 transactions per day, according to data on Cardanoscan.

ADA volumes

Cardano NFT Volumes Take The Lead

Cardano also seems to be ranking in the top 3 NFT chains, as it witnesses $968,000 traded in digital tokens, following the lead after Ethereum and Solana.

To highlight the growth number, Cardano has recorded a 132% jump in 24-hour NFT volume as well. Moreover, Cardano also witnessed NFT traders from the Solana blockchain coming over as a reason for dropping volumes and outdated NFT projects on the Solana blockchain. Factually, the Cardano blockchain has recorded a 75% MoM gain this October.

For the uninitiated, the three biggest NFT projects currently present in the Cardano blockchain are The Ape Society, Cabins by The Ape, and SpaceBudz.

Therefore, some clear reasons can be stated for the reasons for increased activity on the Cardano blockchain. The primary of them is the increased attention from new as well-migrating NFT traders.

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Meanwhile, another significant thing to consider would be the times when Cardano’s Defi protocols go live on the blockchain. As they’ll be considered the real beast protocols on the blockchain. Even though, this crypto winter is turning out to be bad for the market, be that as it may, we can see a good probability of the rising of DeFi in the Cardano ecosystem.

ADA Technical Analysis

The total volumes on the blockchain are up by nearly 28% in the last 24 hours.

The price action of ADA hasn’t been fortunate lately. Since it’s an all-time high in September of 2021, it has been falling systematically, with many dead cat bounce traps in the way.

Source: Tradingview (ADA/USDT)

This year, the crypto has lost almost 80% of its value since all-time highs and currently stands at $0.3363.

While May of 2022 proved to be the worst month for ADA, wherein it lost 50% of its core value, October of this year might witness a short-term turnaround. There is a clear indication of a bullish divergence present between the price and volume oscillators chart.

Source: TradingView (MACD – ADA/USDT)

Furthermore, ADA lost its support from $0.42 to take the nearest support at $0.40 and $0.36, but currently, it has broken below.

ADA also has failed to move past any of the major Moving Averages. Therefore, this can be highlighted as short-term bearishness.

ADA’s moving average convergence divergence highlights negative readings while its relative strength index is at 20.28, i.e. oversold region.

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Source: TradingView (MACD – ADA/USDT)

Cardano: Future Prospects

Cardano, on the contrary, has impressive fundamental qualities that can support the prospects of its future growth.

On 23rd September, Cardano blockchain successfully implemented the Vasil hard fork, which was considered to be a significant upgrade to the blockchain network, commended for bringing benefits of the increase in transaction speed and reduced fees simultaneously.

Vasil is touted to be the biggest upgrade since Alonzo’s September 2021 upgrade, which effectively brought smart contracts to the platform. Therefore, on the fundamentals side, Cardano seems to remain competitive in the space.

 

Jatin Sewani is crypto markets writer/reporter based in India. He is skilled in onchain as well as technical analysis. He's currently pursuing actuarial science which lets him look at things from a risk-based perspective.

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