Cardano’s recent performance has been impressive, with a 20.75% price increase in the last week, reaching a high of $0.42. This surge in price can be attributed to factors such as the Mean Coin Age, which measures the average age of all tokens on the blockchain. As holders of ADA move their old tokens, the coin age decreases, indicating more interest and accumulation rather than distribution.
On-chain data also shows that Cardano holders have been retiring their assets into non-custodial wallets, leading to a decrease in the 90-day Mean Coin Age to 34.71. Additionally, the Open Interest for ADA has reached $613.12 million, the highest level in over a month. This increase in Open Interest suggests that traders are adding more liquidity to the market, potentially leading to a sustained uptrend in ADA’s price.
Furthermore, Cardano’s correlation with Litecoin is strong, making it likely that ADA’s price will continue to climb along with LTC. As Litecoin hits a weekly high and reaches a value of $70.56, there is a high possibility that ADA’s price will follow suit. Overall, Cardano’s market cap in LTC terms is something to watch closely as both cryptocurrencies show positive momentum.