According to U.Today, ADA has seen a surge in activity recently, with a surge in the number of large-value transactions. Shockingly, the number of ADA transferred in 24 hours reached 25 billion. On-chain activity coincides with ADA’s price action, calling for a deep dive into on-chain metrics and their impact on the asset’s future. In the on-chain data, we see a significant increase in the number of large transactions, which usually means large wallet activity from whales or institutional players. This kind of activity could signal preparations for market developments, whether bullish or bearish.
Moreover, the recent large transaction volume reaching 27.67 billion ADA further reinforces the intensity of this activity. Meanwhile, ADA’s price chart shows a narrative full of tension. After a period of decline, ADA showed an attempt to recover, approaching the 50-day EMA, which is currently around $0.5, but has not yet achieved a clear breakout. Currently ADA is trading slightly below this key EMA level, and the focus is on whether it can gain the necessary momentum to surpass it. If ADA succeeds, it may encounter the next resistance, which is around $0.55, and this rise will coincide with the increase in on-chain activity. Conversely, if it cannot surpass the 50 EMA, ADA may retest the support close to $0.49, which is a recent low and may serve as a starting point for another upward attempt. Given the current dynamics, the future of ADA depends on the surge in on-chain activity and market buying activity. Unfortunately, the market is currently taking a break, ready to rise again. Hopefully, the decline in liquidity and volatility in the market as we approach the weekend will not lead to a significant drop in price.