This week, Cardano, a Layer-1 blockchain token and one of the Ethereum network’s main rivals, is expected to continue its upward trend. In the first week of November, the price of the altcoin increased by about 20% on Binance, and the asset’s on-chain measures indicate a bullish scenario.
Cardano on-chain data indicates that ADA price rises are likely.
ADA price increases are indicated by three important on-chain measures.
The transaction volume has increased over the last three months, as shown in the chart below, peaking in November. On November 6, the number of transactions increased from 237.63 million to 332.08 million.
The number of transactions on the Cardano blockchain reached a three-month high of 332.08 million at its peak. The ADA price-bullish argument is supported by this.
Network Realized Profit/Loss
As can be seen in the chart below, Net Realized Profit/Loss is a statistic that determines the net profit or loss (in USD value) for all Cardano token coins spent over the course of six months. The last major capitulation event occurred on October 30, five months after Cardano’s peak, according to the NPL chart.
This measure indicates that all trades involving tokens spent in November were mostly successful, which lends credence to the bullish theory around the price of Cardano.
Whale transaction count (>$1 million)
The number of whale transactions—transactions valued at more than $1 million—reflects the movements of big wallet holders of Cardano. Whale activity is usually bullish when the asset’s price is declining.
Regarding Cardano, whale transactions with a value of $1 million or more surpassed 6,700 between November 2 and early Monday morning, concomitant with an increase in the price of ADA. To sum up, whales are probably hoarding Cardano, which is causing the price of ADA to rise. Whale transaction numbers at the current level generally align with a local peak, as can be seen in the chart below. In January 2022 and June 2022, this happened. As a result, the price of ADA may rise to create a local top before the asset declines.
The cardano price is primed for 5% gains.
Cardano price is aiming for the $0.3692 level, which is the 61.8% Fibonacci Retracement level of the drop from ADA’s April 15 top of $0.4608 to June 10 bottom of $0.2209. This can be seen in the price chart below.
Therefore, the ADA price could increase by 5% throughout its upswing before reaching the $0.3692 mark. The Fair Value Gap’s lower border, at $0.3978, is the next point of resistance.
The bullish thesis is likely to be refuted if the Cardano price closes below the 50% Fibonacci retracement mark at $0.3408, which would push the price down to $0.3199, the 10-day Exponential Moving Average (EMA) that supports ADA. The upper bound of the FVG at $0.3111 would be the next support. Cardano prices are expected to show a trend reversal and rise from the FVG’s lower barrier at $0.3089 once the gap is filled.