Cardano (ADA) experienced a significant price increase of nearly 80% over the last week, becoming one of the top 10 best-performing cryptocurrencies. The price reached $0.62 before retreating to $0.60, sparking speculation about the end of its bull run. However, on-chain analysis indicates that the rally might continue.
The rise in Cardano's price began after indicators suggested a Donald Trump election win in the US, with ADA's price moving from $0.33 to a high of $0.62. Insights from IntoTheBlock reveal that an increased Average Transaction Size suggests substantial involvement from institutional investors.
The Mean Dollar Invested Age (MDIA) metric also indicates continued bullish momentum if the trend persists. If MDIA decreases, indicating increased token circulation, ADA could potentially rise further in value from its current level.
From an on-chain perspective, analysis using the In/Out of Money Around Price (IOMAP) suggests significant support at $0.59, with potential for ADA to challenge and surpass $0.62 if conditions remain favorable. Technical analysis, such as the breakout from a descending triangle, suggests the potential for continued price increases.
In conclusion, if the current bullish indicators hold, Cardano's price could extend its rally and potentially reach $1.34. However, any intensification in selling pressure might hinder this upward trajectory.
