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Will the 50,828 Active Addresses on Cardano Drive the Next ADA Super Cycle?
Will the 50,828 Active Addresses on Cardano Drive the Next ADA Super Cycle?
January 22, 2025
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Cardano (ADA) has seen a 3.05% rise in the past 24 hours amid growing network activity, with active addresses surpassing 50,800. Despite a more than 5% decline over the past week and a 1% dip in the past 14 days, Cardano is bouncing back significantly in the last 24 hours. As of the latest data, ADA is trading at $0.9921, with an increase in daily active addresses. This uptick typically signals strong market participation with diminishing concerns about large sell-offs.
Cardano Rising Network Activity and Price Correlation
According to on-chain data shared by analyst Ali Martinez, Cardano’s network activity remains robust. Specifically, he cited daily active addresses reaching levels above 50,800 as of January 20. Historical trends suggest a correlation between price and network participation. Notably, between January 4 and January 8, both metrics surged. A price correction between January 9 and January 12 coincided with a drop in active addresses. Meanwhile, both indicators rebounded from January 13 to January 19, signaling renewed market interest. Post-January 20, daily active addresses remain elevated, though they declined to around 35,000 on Tuesday.
Cardano chart showing improved active address metric | Santiment
IntoTheBlock data further supports this recently observed spike in Cardano network activities. Over the past week, new addresses increased by 4.79%, indicating an influx of new users. Active addresses rose by 11.99%, demonstrating higher engagement with the network. However, historical patterns show that price corrections follow after peaks in daily active addresses.
Cardano Daily Active Addresses
Shifting Trends in ADA Ownership
Meanwhile, ownership distribution trends show retail adoption expanding while long-term holders reduce their positions. Cardano whale holdings have decreased by 1.68%, which may indicate profit-taking or strategic repositioning.
Cardano Historical Concentration
Meanwhile, investor and retail accumulation have grown by 1.60% and 0.72%, respectively, signaling rising confidence in ADA’s prospects. Increasing retail participation often indicates long-term network sustainability, while investor accumulation suggests market optimism.
Technical Patterns and Market Outlook for ADA
Prominent market watchers like trader Peter Brandt have also recently joined the ADA conversation, with Brandt noting that the crypto may have completed its bearish phase. Brandt identified a descending triangle pattern that led to a prolonged downtrend from 2022. A double-bottom base formation around $0.20 in early 2023 marked a reversal, setting up a bullish trend. ADA later surpassed $1.20 in late 2024 before facing resistance. Brandt suggested that this pattern provides a foundation for future gains, hinting at a possible altcoin season. In his view, Cardano could be getting set for what he described as a grand bull market.
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