On-chain research hints at an optimistic outlook for the cryptocurrency, suggesting that the value of smart contract network Cardano ($ADA) may be “severely underpriced.”
According to on-chain analytics company Santiment, $ADA hark and whale addresses — those owning between 100,000 and 10,000,000 tokens – have been actively acquiring over the last six weeks, while the price of the cryptocurrency continues to fall.
It has been claimed by CryptoGlobe that sharks on the Cardano network have been slowly but gradually amassing tokens since June, and that they currently control more than 4 billion $ADA, representing their greatest share of the cryptocurrency’s supply in over a year and a half.
In its most recent Asset Report, CryptoCompare highlighted that with the collapse of FTX, there has been a growing trend of customers shifting their bitcoin assets from centralized platforms to decentralized alternatives and self-custody.
The change, according to CryptoCompare, increased the average daily active user count on the smart contract platform. Cardano had a monthly increase in Users of 15.6% to 75,800 in December, the highest level since May.
Similarly, the monthly transaction volume on the Cardano network increased by 5.34 percent to 2.32 million last month, the highest level since April.
Analyzing actual profits and losses, Santiment’s analyst observed that sellers are tired, since “every time the price drops significantly, there are less and fewer coins trading at a loss.”
According to the expert, Cardano faces a volume gap between $0.19 and $0.26, where he anticipates “significant purchasing.” The analysts determined:
“On the basis of the identified components, I think that pricing will grow in value. It’s tough to judge this analyses’ accuracy without seeing the whole picture. When making investing choices, it is essential to examine different elements and thoroughly assess the available facts.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.