Is Cardano’s 20% Upside Enough? Not If Litecoin Has Its Say And…

• ADA’s performance is driven by the network’s rising position and another notable change
• The altcoin shares a strong correlation with LTC, suggesting that its price may continue to rise.

Cardano [ADA] The price has risen by 20.75% in the past seven days and reached a weekly high of $0.42. The price surge has ensured that the token, which was at one point one of the worst performers in the market, has become the biggest winner among the top 10.

However, ADA did not rise to the top without any solid foundation. According to AMBCrypto’s on-chain analysis, the coin’s average age was one of the reasons why the price rose as it did.

Often abbreviated as MCA, it measures the average age of all tokens on the blockchain. When a coin ages, it means that cryptocurrency holders are moving their old tokens.

Less distribution, more attention, more accumulation

In most cases, this leads to distribution and negatively affects the price. On the other hand, when the life of a coin decreases, it means that its holders choose to keep their coins off exchanges.

In our analysis using Santiment data, we Note The 90-day average interest rate on Cardano has dropped to 34.71. This indicates that Cardano holders have been depositing their assets in non-custodial wallets.

Source: Santiment

If this remains the case, it is very likely that the price of ADA will approach $0.45.

Another indicator responsible for the rise in prices is Open Interest (OI). Here, open interest refers to the total value of open contracts in the market. When open interest increases, it means that there is an increase in net positions. Simply put, an increase in open interest means that traders are adding more liquidity to the market.

However, when the OI falls, traders close their positions and withdraw money from the market. When this happens, it puts the price at risk of falling.

For Cardano, the data on the chain open Open interest stood at $613.12 million at the time of publication. This was the highest level for the metric in more than a month.

If the value continues to rise, it could serve as a force for a sustainable ADA bullish trend. If this happens, there is a high chance that the native Cardano token could rise to $0.45.

Source: Santiment

If Litecoin moves, will Cardano follow?

Additionally, AMBCrypto’s analysis of Cardano’s correlation with other cryptocurrencies suggests that the price could continue to rise as well. Of all the cryptocurrencies in the top 20, Litecoin was [LTC] It is the one with which ADA shares the strongest association.

As an indicator provided by IntoTheBlock, the correlation matrix ranges from -1 to +1. When the reading is close to -1, it means that prices are diverging. However, a reading close to +1 means that prices are mostly moving in one direction. same direction.

Source: IntoTheBlock

Whether it’s real or not, here’s the market cap of ADA in terms of LTC

This was the case with ADA and LTC. Moreover, like Cardano, Litecoin also hit a weekly high recently.

At $70.56 at the time of publishing, if the price of LTC continues to rise, there is a high chance that the price of ADA will follow suit.