Cardano (ADA) price has risen in popularity as it increased in value by more than 25% over the past three days and has climbed up to $0.43. Santiment data suggests that the combined effects of whale transactions and network activity are mainly responsible for this rise.
The last rally has awakened interest within the ADA community. There are signs that retail investors will also join in the foreseeable future due to fear of missing out (FOMO).
Whale Activity and Network Transfers Propel ADA Price
For the past three days, Cardano price displayed an increased trend of activity within its network compared to its price volatility. More than 37,892 different address transfers occurred within one day.
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This represents a significant improvement in the volume of transactions ever since the network reached its daily low of September 4.
Also, 697 transactions of over $100k have been highlighted. This suggests that whales are heavily participating in ADA, and seem to play a big role in its upward trend.
The increase in high-value transaction volume has motivated ADA’s price increase which went up to $0.43 for the first time since July. High value prices normally indicate strong investors confidence.
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Such results can generate a positive contagion effect in terms of attracting investors. This happens particularly if retail activity starts to rise in response to such prices.
Developer Engagement Ranks High, Reflecting Network Stability
Regarding project development, Cardano is one of the most active blockchains in development activity, right behind ICP, LINK, and HBAR.
This continued developer interaction suggests continuous enhancement and development within the Cardano ecosystem. Further, it strengthens its positioning within the wider crypto space.
Developer activity is a fairly good indicator of sustainability and project maturity. A committed team is focused on maintaining and adding to the functionality of the network.
Cardano developers’ position in the top list also helps the blockchain to rank among other well-established platforms.
Such activity is helpful especially for enhancing confidence for the existing and potential investors. It speaks to the stability and versatility of the network
Furthermore, ADA trading volume has increased significantly, recording a 142% increase on 8th November 8th with more than $1 Bbillion.
This increase in trading volume is an affirmative signal of the market interest in ADA. It assists the ADA price increase.
The increase in volume also indicates a higher buying interest and can be seen as showing signs of both. It could also indicate whale accumulation as and well as early involvement of small scale investors.
Increased trading volume leads to stability in the price because the trade transactions are continuous and large. It would not be affected by one or two large trade’s impact on the price level.
Based on this, Cardano’s increase in volume coupled with the surge in price puts it in a good stead for long-term growth if the retail investors come into the picture.
Potential for Retail FOMO and Market Outlook
In ADA’s recent price surge scenario, the setup for a possible retail FOMO is created on the basis of its recent performance and robust network. Santiment notes that ADA price uptrend might soon attract the attention of the retail investors who have been anticipating positive price shifts.
Such increased interest from the retail community has the potential to amplify ADA, especially in terms of trading volume and price.
