Cardano may experience significant increases in the coming days as it is currently in an upward trend. This expectation is also reflected in the on-chain metrics of the altcoin. The Cardano Foundation stated that 11,420,000 <a href="https://en.coin-turk.com/big-investors-accumulate-cardano-ada-despite-market-silence/”>ADA will be used for Cardano Improvement Proposal (CIP) 1694, in line with the community’s goals.
Factors Supporting the Increase in ADA Price
There is a possibility of the continuation of the 6.11% increase in Cardano on a weekly basis. The continuation of this rise is dependent on two factors. The first one is the on-chain metrics, which include the Network Profit/Loss (NPL) metric and the Market Value to Realized Value (MVRV) metric. The other factor is the developments in the ADA ecosystem.
The Cardano Foundation, a non-profit independent organization, is focused on decentralizing the Cardano network and supporting the progress and implementation of ADA in the corporate field. The Foundation announced that it will use 11,420,000 ADA tokens to vote in favor of improvements on the Cardano Blockchain early Tuesday.
On-chain Metrics Supporting the Increase in ADA Price
According to Santiment’s data, there has been an increase in the net realized losses of wallets buying ADA tokens in the last thirty days. This indicates accumulation for ADA. Following accumulation periods, a price rally is observed as seen in the chart below.
On the other hand, the seven-day MVRV ratio metric showed that the addresses selling ADA tokens at the current price of $0.3786 are at a loss. This indicates that market participants are less likely to sell their assets at a loss, resulting in low selling pressure on exchanges. Ultimately, this metric also presents a bullish movement outlook.
The Condition of ADA Price
As of writing this article, when we look at the ADA price, the token is trading above the 0.61 Fibonacci level, which is the 0.22 dollar dip level on June 4th, from the peak of 0.46 dollars on April 15th. Accordingly, ADA is trading at $0.3786. As long as the asset stays above the 0.50 Fibonacci level at $0.3408, it seems likely to increase its gains. If there is a candlestick close below this level, the bullish thesis for Cardano price will be invalidated.
In the event of a price decrease, it is expected that Cardano will find support at the 10-day Exponential Moving Average (EMA), which is at $0.3730.
