ADA has seen a boom in activity, with the number of large transactions skyrocketing. A staggering 25 billion ADA were transferred within 24 hours. The activity detected on-chain is consistent with ADA's price action and requires a deeper look at the on-chain metrics and what they mean for the asset's future.
Diving into the on-chain data, we see a spike in the number of large transactions, which often indicates significant wallet movements by whales or institutional players. Such movements can suggest preparations for market developments, bullish or bearish. Furthermore, the large trading volume, which recently peaked at 27.67 billion ADA, further reinforces the intensity of this activity.
At the same time, ADA's price chart shows a tense story. After a period of decline, ADA showed recovery attempts, sticking close to the 50-day EMA, currently at around $0.50, but was unable to achieve a clear breakthrough.
With ADA currently trading just below this key EMA level, the focus is on whether it can gain the necessary momentum to surpass it. If ADA succeeds, it could encounter further resistance at around $0.55, an increase consistent with increasing on-chain activity. Conversely, failure to break above the 50 EMA could cause ADA to retest support near $0.49, a recent low that could serve as a foundation for another upward attempt.
Given the current momentum, the future of ADA depends on on-chain activity and an increase in market buying activity. Unfortunately, the market is currently taking a pause before rising again. Hopefully the drop in liquidity and volatility in the market near the end of the week will not cause prices to drop significantly.
