Cardano (ADA) Price Rebounds as Traders’ Optimism Rises; Here Is What to Watch

On-chain analytics firm Santiment notes a significant rise in traders’ optimism within crypto social circles as Bitcoin and the entire crypto market recover.

? The discussion rate of the word #pump on #crypto social circles has hit a 3-week high, as #Bitcoin has made another end-of-week rally to rebound to $41.6k. Watch carefully for crowd doubt to imply whether the rally can punish those spreading #FUD. ? https://t.co/68TbeiMygc pic.twitter.com/CmkLr3l2B2

— Santiment (@santimentfeed) February 5, 2022

Cardano’s ADA token is posting a rebound alongside the rest of the altcoin market. At the time of publication, ADA was trading at $1.16, up 6.05% in the last 24 hours per CoinMarketCap data.

Here is what to watch

On-chain signals provided by IntoTheblock have flipped mostly bullish for ADA at press time. Cardano has seen a rise in addresses since the start of 2022.

U.Today reported that Cardano addresses with a balance between 10,000 and 1,000,000 ADA have increased by a staggering 15,000% since mid-December 2021. This category of investors more than doubled its holdings by accumulating $53.6 million in tokens in late January, per Santiment. Also, the balance held by addresses with 1-10 million ADA has increased by 40.65% in just the first month of 2022.

Following the launch of dApps on Cardano, transactions interacting with smart contracts now make up the majority of $ADA transactions.

Read more about the state of Cardano and how its design is revolutionizing smart contract platforms: https://t.co/QZcJS5wL8G pic.twitter.com/E5kOx2s71l

— Kraken Exchange (@krakenfx) February 4, 2022

Top crypto exchange Kraken indicated in its report that ADA’s present price action, coupled with its daily transactions, might be a bullish indicator. Kraken also notes that transactions interacting with smart contracts now make up the majority of ADA transactions, following the launch of dApps on Cardano.

The total number of Cardano wallets recently surpassed the $3 million mark. As of Dec. 24, this figure stood at 2.5 million, and more than 500,000 ADA wallets have been added since then.