Cardano’s On-Chain Data Suggests Potential Bottom

Cardano has seen a rise in prices after hitting a low of $0.23 following the FTX collapse. The on-chain analytics firm Santiment has released data indicating three key metrics that had surged during the time of the price plummet.

Three Key Metrics

The first of these metrics is “trading volume,” which measures the total amount of Cardano being transacted on the blockchain every day. The second is “daily active addresses,” which measures the daily total number of unique Cardano addresses participating in transaction activity on the blockchain. Lastly, “social dominance” tells us what percentage of discussions on social media relates to Cardano.

Cardano’S On-Chain Data Suggests Potential Bottom

A chart shows that both the trading volume and daily active addresses spiked during the price decline, implying that the market had turned active as it plummeted. Social dominance also shot up during that time, suggesting that interest around Cardano increased as the price declined.

Given that all these metrics reportedly rose together during the formation of the low, it’s possible there was real interest in purchasing Cardano. As a result, the bottom seems to be potentially in for Cardano.

Current ADA Price

As of now, Cardano is trading at around $0.27, which is a decline of 22% over the last week.

Featured image from istock.com, charts from TradingView.com, Santiment.net.

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