Cardano breaks txn count downtrend after 15 days; Can it trigger a price reaction?

Lavina Daryanani
Source: NewsBTC

Just like most large-cap coins from the market, Cardano too has been shedding value of late. However, this alt’s weekly wounds were the deepest when compared to its counterparts like Bitcoin, Ethereum, and XRP.

After having a 17% haircut over the past 7-days, ADA was priced at exactly $1 at the time of press.

Ripening state of Cardano’s ecosystem

The state of the broader Cardano market had been sluggish over the past few days. The number of transactions taking place on its blockchain, for instance, shrunk from 101k to 77k in 4 days last week. Things have, however, changed for the better over the past day.

As can be seen from the chart below, the curve of the transaction count registered a notable uptick for the first time in 15 days yesterday. The same, to some extent, hints toward the fact that market participants’ interest with respect to Cardano is being replenished.

Parallelly, Cardano’s NVT has also been revolving around its 1-year lows of late. Unlike most other networks, ADA has always shared an inverse relation with this metric. The chart below clearly illustrates that peaks on the NVT front have coincided with price bottoms and vice versa.

As such, a high NVT signifies that the network valuation is able to outpace the value being transferred on the network. Conversely, low numbers indicate that the network’s worth ain’t able to keep pace with the transferred value.

Thus, the current low values suggest that the Cardano blockchain is undervalued at the moment, and is another bullish sign by itself.

Source: Messari

Despite the ecosystem ripening up, it shouldn’t be forgotten that ADA has slowly started losing its lustre. On the rankings front, for instance, Cardano occupied the third slot at a particular point last year, but now has already slipped to the eight position.

A year back people from the market were quite optimistic with the long-term prospects. That excitement has, partially, fizzled out already, despite regular developments taking place.

Thus, the eco-systemic positives do not cent-percent guarantee a price trend change for Cardano. Whatsoever, it’d be interesting to note whether or not things end up panning out in a conventional fashion this time for the alt.