According to Cointelegraph, Cardano's (ADA) price experienced a 9% rally over the weekend following the announcement by The Artificial Superintelligence Alliance (ASI) that their native token, FET, has been deployed on the Cardano blockchain. This development has sparked renewed interest in the Cardano ecosystem, with other on-chain ADA metrics also showing significant activity.
On September 7, the ASI alliance announced the deployment of its native token, FET, on the Cardano blockchain, highlighting the network's security, speed, and low transaction costs as primary reasons for the move. The FET token, which will be rebranded as the ASI ticker, is now a native Cardano token (CNT), offering improved functionality and integration with the ADA ecosystem. Following the announcement, both ADA and FET saw collective gains of 8.39% and 6.85%, respectively.
Ben Goertzel, CEO of SingularityNET, praised Cardano's infrastructure, noting that its "mathematical elegance" will play a crucial role in advancing Artificial General Intelligence. The announcement also led to a surge in ADA active addresses, reaching a five-month high of 52,077 on September 7, according to data from analytics platform Santiment. This increase in active addresses occurred before the price rally, potentially contributing to a short-term bullish sentiment for ADA.
Additionally, the funding rate for ADA turned positive over the weekend after a period of negative funding, indicating that long bets may have dominated the price action. However, ADA's open interest has remained constant over the past month, suggesting that the price is being influenced by a small group of futures traders. If these traders change their bias, ADA could potentially experience a bearish trend continuation.
Another factor contributing to ADA's recent rally is its high correlation with Bitcoin (BTC). Bitcoin managed to close above $54,000 on the weekly candle and is currently trading above $55,000. Data shows that Bitcoin and Cardano share a high 90-day rolling correlation index of 0.74, which has increased by more than 10% since the beginning of August. While Bitcoin's returns were only 3% over the weekend, it has provided ADA with a bullish base to build on from its ASI collaboration news.
ADA's price reached as high as $0.35 on September 9. On both the 1-hour and 4-hour charts, ADA has successfully undergone a break of structure (BOS) of the current bearish trend. On the 1-hour chart, ADA has maintained a price position above the 200-day EMA level after forming a bullish double-bottom pattern. However, ADA currently faces resistance from the same indicator on the 4-hour chart. If ADA can breach the 200-day EMA level on the 4-hour chart, it could potentially retest local highs at $0.40 in the coming days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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