The rising tide of cryptocurrencies continues unabated, with smaller 'altcoins' also gaining today, although part of the euphoric rally was reduced after the reading of the US NFP report. Capital flowing out of Bitcoin temporarily 'feeds' into smaller projects. In the lead among the top ten cryptocurrencies, Cardano emerges, recording a nearly 14% rally today. In periods of optimism, Bitcoin's consolidation after a dynamic rally usually ended with smaller cryptocurrencies rising, and we can see that this time the market's mechanics work quite similarly to trends in previous bull markets
Why the euphoria on Cardano?
The altcoin market is, of course, reacting to Bitcoin's rises and a general improvement in risk appetite, supported by the weakening of the US dollar and falling yields. The project has been performing very poorly for many months, including against other cryptocurrencies in the top 10, and when looking for justification for Cardano's nearly 90% price increase over the past 50 days, we can find arguments for the growth of the network (Also in a slump, more than 150 new projects have been created, and a total of nearly 1,300 projects have been built on the Cardano network), or significant developer involvement in development (one of the highest developer community activity among cryptocurrencies, on Github).
According to on-chain data, the activity of large transactions (above $100,000) on the network, increased in the first days of December and amounted to more than 7,000 against 4,000 to 6,000 (the so-called Cardano epoch), in each of the 5 days of October. According to data from the IntoTheBlock platform, the volume of so-called whale transactions (above $100,000) amounted to $9.55 billion in the last two weeks of November against $33.64 billion for Bitcoin. It was also the second-largest volume among the 10 largest listed cryptocurrencies. It turned out to be nearly three times larger against Ethereum alone. Of course, limited supply and growing hopes around the next cryptocurrency bull market, in 2024, are also important catalysts for the growth of 'alt'.
Cardano chart (D1)
Looking at Cardano's trading, we see that the cryptocurrency has reached levels not seen in nearly 19 months, although the 23.6 elimination of the March 2020 upward wave suggests significant resistance 'only' around $0.9. Looking at the current upward structure, it seems that after a strong impulse, a possible scenario is consolidation or a correction to the area of $0.45, where we see the 23.6 Fibonacci abolition of the upward wave from the summer of 2023.