- ADA’s performance was driven by an increase in net positioning and another notable change
- Altcoins have a strong correlation with LTC, indicating that its price may continue to rise.
Cardano [ADA] The price has increased by 20.75% over the past seven days to hit a weekly high of $0.42. The price increase has made what was once one of the worst performing tokens on the market the biggest gainer among the top 10.
However, ADA did not skyrocket without a solid foundation: according to on-chain analysis by AMBCrypto, the average coin age was one of the reasons for the price surge.
Often referred to by its abbreviation, MCA measures the average age of all tokens on the blockchain: as coins age, it means cryptocurrency holders are moving out older tokens.
Less distribution, more interest and more accumulation
In most cases, this is distribution This will have a negative impact on the price. On the other hand, as a coin ages, it means that holders are choosing not to deposit their coins on exchanges.
In an analysis using data from Santiment, Observed The 90-day MCA has fallen to 34.71, indicating that Cardano holders are moving their assets into non-custodial wallets.
Source: Santiment
If this situation continues, there is a high chance that the price of ADA will approach $0.45.
Another indicator that can cause a price rise is the open interest (OI). Here, open interest refers to the total amount of contracts that are open in the market. When OI rises, it means that net positioning has increased. In simple terms, an increase in OI means that traders are adding more positions. Liquidity To the market.
However, when the OI falls, traders close their positions and withdraw funds from the market. When this happens, it creates a risk that the price will fall.
In Cardano’s case, on-chain data Revealed At press time, open interest stood at $613.12 million, the highest level in the past month.
If the value continues to rise, it could be a strength for a sustained uptrend in ADA, which would likely see Cardano’s native token rise to $0.45.
Source: Santiment
If Litecoin makes a move, will Cardano follow suit?
Additionally, AMBCrypto’s analysis of Cardano’s correlation with other cryptocurrencies suggests that the price may continue to rise. climb Among the top 20 cryptocurrencies, Litecoin [LTC] It is the one that has the strongest correlation with ADA.
According to the indicators provided by IntoTheBlock, the correlation matrix ranges from -1 to +1. Readings closer to -1 signify price divergence. However, readings closer to +1 indicate that prices are mainly Same direction.
Source: IntoTheBlock
Whether it’s realistic or not, ADA Market Cap (LTC)
So did ADA and LTC. Furthermore, Litecoin, like Cardano’s price, also recently hit a weekly high.
At the time of writing, the price is at $70.56, and if LTC continues to rise, ADA’s price will likely follow suit.
