Cardano (ADA) price rose 9% over the weekend after the Artificial Superintelligence Alliance (ASI) announced that its token, FET, had been deployed on the Cardano blockchain.
This has led to renewed interest in the ecosystem, with other on-chain ADA metrics also seeing significant activity.
SingularityNET, Fetch.ai, Ocenal Protocol’s ‘ASI’ Token Launches on Cardano
On September 7, the ASI Alliance announced that it would deploy its own token, FET, on the Cardano blockchain, highlighting the security, speed, and low transaction fees of the ADA network as the main reasons for doing so.
FET, which will be rebranded to the ASI ticker, is now the native Cardano token (CNT) offering enhanced features and integration with the ADA ecosystem.
Since the announcement, both ADA and FET have risen together, up 8.39% and 6.85% respectively since September 7th.
Ben Goertzel, CEO of SingularityNET, praised Cardano’s infrastructure, explaining that its “mathematical elegance” will play a key role in advancing artificial general intelligence.
Cardano Active Addresses Hit 5-Month High
This announcement had a domino effect on Cardano, with ADA active addresses reaching a five-month high on September 7. According to data from analytics platform Santiment, active addresses reached 52,077 on September 7, the highest level since March 2024.
Cardano active addresses. Source: Santiment
The increase in ADA active addresses occurred prior to the rally, which may have helped create a bullish mood for ADA in the short term.
Meanwhile, after the funding period ended in the negative, the funding ratio turned green over the weekend, indicating that long bets likely dominated the price action.
Cardano Open Interest, Funding Rate Chart. Source: Velo.xyz
However, it is important to note that ADA outstanding interest has remained constant over the past month without any significant increases or decreases.
This indicates that the price is being determined by a small number of futures traders, and if they reverse their bias, ADA could potentially continue its downtrend.
ADA shares a high correlation index with BTC.
Another possible reason for the rise in ADA over the past few days is its high correlation with Bitcoin (BTC) price, which broke $54,000 on the weekly candle and is currently trading above $55,000.
According to the data, Bitcoin and Cardano have a high 90-day rolling correlation index of 0.74. The correlation has risen by more than 10% since early August.
Cardano-Bitcoin correlation chart. Source: blockchaincenter.net
While BTC gained just 3% over the weekend, ADA was able to build a bullish base on the news of the ASI collaboration.
Cardano Price Expected to Rise 18% to $0.40
The price of ADA rose to a high of $0.35 on September 9. On the 1-hour and 4-hour charts, ADA successfully experienced a structural breakdown (BOS) of the current downtrend.
On the 1-hour chart, ADA managed to maintain its price position above the 200-day EMA level after a bullish double bottom pattern was formed. However, ADA is currently facing resistance from the same indicator on the 4-hour chart.
Cardano 1-hour, 4-hour chart, Source: Trading View
If ADA price can break above the 200-days EMA level on the 4-hour chart, it is likely to retest the local high of $0.40 in the coming days.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.