Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Cardano is exhibiting signs that could be forecasting a shift in market sentiment. Three key metrics — net network growth, accumulation of large holders’ positions and volume at the bid price versus the ask price — are showing a positive trend, indicating potential bullish tendencies for ADA.
If we take a look at the ADA/USDT trading chart, it reveals that after experiencing a period of volatility, Cardano is consolidating around a key support level. The recent price movements have brought ADA to a convergence point near the 200-day Exponential Moving Average, a significant indicator that often acts as a strategic juncture for price action. Historically, this level has served as a strong support, suggesting that ADA might be gearing up for a rebound.
Net network growth is a vital on-chain metric reflecting the number of new participants joining the network. An uptick in this metric suggests increased adoption and a growing user base, which is inherently bullish as it typically correlates with heightened demand for ADA.
Accumulation by large holders, often referred to as “whales,” is another critical indicator. Whales can significantly influence market dynamics due to the substantial size of their trades. The increasing accumulation hints at confidence among these influential market players, who may anticipate future price appreciation.
The disparity between volume at the bid and ask prices provides insight into buying versus selling pressure. An increase in volume at the bid price indicates stronger buying interest, which can drive up prices, especially if it outpaces the volume at the ask price.
On-chain data confirms these findings, with a notable increase in large transaction counts and volumes, signaling that significant capital is moving into ADA. Additionally, the asset market cap comparison shows ADA holding its value against major cryptocurrencies like BTC and ETH, further reinforcing the positive outlook.
Source: https://u.today/three-major-cardano-ada-on-chain-metrics-flash-green