Cardano’s Social Dominance Surges by 400%; Will it Impact the ADA Price in Q2 2023?

Key Takeaways:

• Cardano’s price breaks above the crucial resistance and achieves the interim targets undergoing a ‘v-shaped’ recovery
• The bulls appear to be well in position, hence the upswing may prevail for some time.
• Traders’ activity over the platform has spiked along with the NFT trades, indicating the price is due for a giant upswing ahead

Cardano is one of the most followed cryptos within the crypto space due to its rigid fundamentals. The price, although, has maintained a silent trend, without any major movements, yet the community hopes for a gigantic rally in the coming days. Along with the market participants, the whales also seem to be extremely bullish on ADA price as they tend to accumulate heavily in the past fortnight. 

The on-chain data reveals that the ADA whales holding over 100 million ADA have scooped up 560 million ADA, which is worth nearly $218.4 million, aiming to make a radical move ahead. Besides, the addresses holding ADA tokens between 1 million to 10 million have also accumulated 150 million ADA worth $57 million. These accumulations are fluttering extreme bullish signals for the crypto. 

In the meantime, the user count on the platform is also surging consistently. After witnessing a sharp decline in January, the number of ADA holders made a consistent rise and has surpassed 4.4 million, which marked new highs. Alongside, more traders appear to have opted for long positions as the funding rates across all the exchanges are positive. 

Read on: Cardano vs Dogecoin

Cardano (ADA) Technical Overview

Source: Tradingview

• The ADA price underwent a steep upswing within a rising parallel channel and achieved the initial target at around $0.389
• After undergoing a v-shaped recovery, the ADA price may head toward the pivotal resistance at around $0.406 wherein it has faced a couple of rejections before
• However, after a minor consolidation at these levels, the price is believed to rise high if the bulls maintain their strength and reach $0.45
• Else, an interim pullback may compel the price to hover above $0.4 but may fail to surge beyond $0.42. 

Cardano (ADA) On-Chain Overview

Cardano Social Dominance

Source: Santiment

Social dominance is the share of discussions across the social media platform referring to a particular token. It compares the social volume like the searches, mentions, posts, etc of a token to the combined volume of the top 100 tokens according to the market capitalization. If the social dominance of a token has surged by 50% then it is considered as it holds half of the messages, posts, etc that discuss the top 100 tokens. 

The social dominance of Cardano rebounded during the first few days of March and maintained a steep upswing later to rise by more than 400%. Presently, the levels have surged beyond 2, which indicates the possibility of bullish sentiments prevailing among the market participants. 

Cardano Total NFT Trades

Source: Santiment

The total NFT trades count is a metric that calculates the market count and market volume in ETH for NFT collections over a platform. It is assumed that when the majority of the volume is buying NFTs the market is in a euphoric state. Besides, when NFT owners accept many orders, the markets are believed to be depressed. 

The Cardano NFT trade count that had grounded all these days witnessed a sudden spike for nearly a month. Therefore, NFTs appear to have gained traction due to the rise of social sentiments. 

Cardano Daily Active Address

Source: Santiment

The demand and the popularity of any token are dependent on user activity. The user activity is determined by the number of times he interacts with the platform to palace buy, sell, or swap orders. Daily active addresses consider all these addresses but only once per day which indicates the growing adoption and attention over the token. 

The ADA daily active addresses have remained largely consistent after witnessing a gigantic drop during the previous year. It indicates that regardless of the market sentiments and price variations, the users continued to remain active on the platform.

Additional read: Cardano Price Prediction

Concluding Thought

Cardano appears to be under huge bullish influence as not only the price has broken the crucial barriers but the other fractals are also pointing towards a longer bullish trend ahead. The surge in social dominance indicates more user participation while the rise in the NFT trade count may again spark a fresh NFT boom.