Why is Cardano price up this week?
Cardano active addresses surged to a five-month high after the ASI alliance announced FET token distribution on the ADA blockchain. The Cardano price increased by 9% over the weekend after the Artificial Superintelligence Alliance (ASI) revealed that its native token, FET, has been deployed on the Cardano blockchain. This sparked renewed interest in the ecosystem, and other on-chain ADA measures saw increased activity.
Singularity, Fetch.ai, Ocenal Protocol’s ‘ASI’ token launches on Cardano
On September 7, the ASI alliance announced the launch of its native token, FET, on the Cardano blockchain, citing the ADA network’s security speed and cheap transaction fees as main reasons. FET, which will be rebranded as the ASI ticker, is now a native Cardano coin (CNT) with enhanced functionality and inclusion into the ADA ecosystem.
Following the announcement, both ADA and FET surged, gaining 8.39% and 6.85%, respectively, since September 7. Ben Goertzel, CEO of SingularityNET, lauded Cardano’s infrastructure, stating that its “mathematical elegance” will help advance Artificial General Intelligence.
Cardano active addresses hit a 5-month high
The statement triggered a domino effect for Cardano, with ADA active addresses reaching a five-month high on September 7. Sentiment, an analytics tool, reports that active addresses hit 52,077 on September 7, the most since March 2024.
The increase of ADA active addresses happened before to the rally, which may have contributed to the ADA’s short-term bullish feeling.
Meanwhile, after a period of negative funding, the funding rate became positive during the weekend, suggesting that long bets may have dominated the price activity. However, it is worth noting that ADA open interest has been stable over the last month, with no major increase or decrease.
ADA shares a high correlation index with BTC
Another possible reason why ADA rallied over the past few days is its high correlation to Bitcoin $57,195 price. Bitcoin managed to close above $54,000 on the weekly candle, and is currently trading above $55,000.
Data indicates Bitcoin and Cardano share a high 90-day rolling correlation index of 0.74. The correlation has risen by more than 10% since the beginning of August.
Cardano price eyes 18% rally to $0.40
On September 9, the ADA price reached a high of $0.35. On both the 1-hour and 4-hour charts, ADA has successfully broken the structure (BOS) of the current bearish trend. On the 1-hourly chart, ADA has maintained a price position above the 200-day EMA level following the formation of a bullish double-bottom pattern. On the 4-hour chart, ADA is currently facing opposition from the same indicator.
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