The Cardano blockchain has experienced an explosion in on-chain activity and has seen its 24-hour transaction volume increase over the last few days, according to Santiment.
Data from market intelligence firm Santiment shows Cardano’s transaction volume fell from around $600 million on Jan. 14 to approximately $300 million on Jan. 23.
From there, the volume began spiking toward $500 million. At the time of writing, the volume was above $560 million. Additionally, data from 21milyon.com indicated an approximate 30% increase in ADA’s trading volume over the last 24 hours.
ADA increasing trading volume. Source: TradingView
More data from Santiments shows Cardano currently leads the market in development activity. In a Jan. 23 post on X, the firm shared the following chart saying,
“Our platform pulls notable #github activity from project repositories via a back tested process to ensure only the team’s significant efforts to innovate and improve are included.”
The chart shows the Cardano network has had more than 332 unique GitHub commits over the last 30 days, ahead of Polkadot’s 329 and Optimism’s 281. Ethereum is in 10th place in that category with only 195 GitHub commits.
Despite increase in trading volume and development activity trend which would suggest increased trading activities, the trend has a negative impact on ADA price.
Over the seven days, Cardano has shown a consistent downward trend in the daily time frame chart. The analysis indicated that ADA had fallen by about 10% during this period. At the time of writing, it reflected a 0.4% increase, trading at $0.472 as of 2:30 am EST.
Cardano price analysis
ADA price has been falling inside a descending parallel channel pattern since mid-December, indicating that higher levels are being sold into.
The downsloping 50-day EMA ($0.518) and the relative strength index (RSI) in the negative territory at 37 indicates that the bears are in control.
Bears will try to strengthen their position further by yanking the price below the channel. If they do that, the selling could accelerate and the ADA/USDT pair may dive below the 200-day EMA at $0.415 to $0.35. Such a move would represent a 26% decline from the current price.
ADA/USD daily chart
Conversely, if the price bounces off the support line of the channel, the bulls will attempt to overcome the barrier at the 50-day EMA. If they succeed, the pair may ascend above the downtrend line of the channel at $0.569, confirming a bullish breakout.