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Three Major Cardano (ADA) On-Chain Metrics Flash Green

Published 2024-01-09, 09:13 a/m
Three Major Cardano (ADA) On-Chain Metrics Flash Green
USDT/USD
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ADA/USD
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U.Today - 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 .

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.

ADA/USDT Chart by TradingViewNet 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 .

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 . Additionally, the asset market cap comparison shows ADA holding its value against major cryptocurrencies like BTC and ETH, further reinforcing the positive outlook.

This article was originally published on U.Today

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