Kraken Report: DApps Launch Could Bring Bullish Momentum For Cardano (ADA)

A report from the crypto exchange Kraken highlights Cardano’s the current price movement relative to its daily transaction as a bullish indicator for its native token ADA.

According to the Kraken report, ADA’s price has been strongly correlated with the volume of network activities in the past. However, since late 2021 it all changed, when Cardano’s price failed to keep up with the increase in its daily transactions.

“Throughout the course of 2020 and 2021, per figure 13, there was a strong correlation between ADA price movement and daily transactions. This relationship sustained until November 2021 when we saw the price of ADA trickle off while daily transactions saw a slight uptick.”

The Kraken analysis notes that a “buy the hype, sell the news” pattern describes the market activities leading to Cardano’s upgrades, but the current relationship between ADA’s price and transaction volume suggests diminishing hype over the network.

ADA is currently going through a correction phase and is still on track for growth as decentralized apps (DApps) launch on the network, the report points out.

“This could be a bullish indicator for ADA that the asset is in a correction cycle due to a drop in hype rather than exodus of the network. This is important to consider particularly as the long-anticipated launch of DApps on the network begins to roll out.”

At time of writing, ADA trades at $1.13 with 7.7% upside on the daily chart.