• AMB surpassed the $0.40 psychological level, but active addresses failed to grow.
• Technical indicators suggest a further hike for ADA.

For the last few days, Solana [SOL] has been the best-performing cryptocurrency out of the top 10 per market capitalization. But, in the last 24 hours, SOL has passed that baton to Cardano [ADA].

AMBCrypto critically looked at the ADA price action and observed that the token value had increased by 11.24 within the aforementioned timeframe. In the process, ADA broke the $0.40 psychological level.

While this hike served as an impressive showing, the same could not be said of the Cardano network. One reason for this was because of the Price-Daily Active Addresses (DAA) divergence.

Dwindling activity now is not bad news

According to AMBCrypto’s analysis of Santiment’s data, active addresses on the Cardano network decreased as the price surged.

For context, the DAA is one of the best on-chain metrics for evaluating overall user activity on a blockchain.

The metric also has a significant impact on a cryptocurrency’s value. At press time, ADA’s price-DAA was -43.16%.

Using the price-DAA divergence strategy, the price growth over the active addresses could serve as a buy signal for short to mid-term investors.

If the Cardano DAA had outpaced the price, then it would have been a signal to sell. Typically, ADA’s uptrend within such a short period might have left market players wondering if it was a good entry time.

But from the metric mentio

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Author: Victor Olanrewaju

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