HomeNewsCardano's Bullish Turn: Key On-Chain Metrics Signal Upward Trajectory

Cardano’s Bullish Turn: Key On-Chain Metrics Signal Upward Trajectory

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  • Cardano (ADA) displays positive signs with three major on-chain metrics indicating a potential bullish trend.
  • Metrics include net network growth, accumulation by large holders, and a favorable bid-ask volume ratio.

Cardano’s On-Chain Metrics Signify a Rising Bullish Tide

Cardano, one of the leading blockchain platforms, is showing significant signs of a market sentiment shift, as revealed by three key on-chain metrics. These indicators are hinting at a potential bullish movement for ADA, Cardano’s native token.

1. Net Network Growth: A Sign of Increasing Adoption

Net network growth, a critical metric, reflects the number of new participants joining the Cardano network. An increase in this metric is a bullish signal, suggesting growing adoption and user base. This heightened demand for ADA typically correlates with an increase in its price.

2. Whale Accumulation: Confidence Among Large Holders

Another crucial indicator is the accumulation of ADA by large holders, often known as “whales.” These entities play a significant role in the market due to the substantial size of their trades. An uptrend in whale accumulation indicates their confidence in ADA’s potential for future price appreciation.

3. Bid-Ask Volume Disparity: Indicating Buying Pressure

The third metric, the disparity between volume at the bid and ask prices, provides insight into the current buying versus selling pressure. An increase in bid price volume suggests a stronger buying interest, a precursor to price increases, especially if it surpasses the volume at the ask price.

Trading Chart Analysis: ADA at a Convergence Point

A closer examination of the ADA/USDT trading chart reveals that Cardano is currently consolidating around a pivotal support level, near the 200-day Exponential Moving Average. This level historically acts as robust support, indicating that ADA might be preparing for an upward price movement.

The Bigger Picture: Cardano’s Market Position

On-chain data corroborates these observations, showing a notable rise in large transaction counts and volumes, indicating significant capital inflows into ADA. Additionally, Cardano is maintaining its market value compared to major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), reinforcing its positive market stance.

The confluence of these on-chain metrics for Cardano signals a potential bullish trend in the near future. With increasing network growth, whale confidence, and a favorable bid-ask volume ratio, ADA seems poised for an upward trajectory, further cementing its position in the competitive crypto landscape.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628