Cardano (ADA) has been showing promising signs of reaching new price levels in the coming weeks, as indicated by on-chain data and adoption growth. The creation of new wallets on the Cardano blockchain has witnessed significant spikes on multiple days since the beginning of February, suggesting a potential influx of new money into Cardano.
Increased Wallet Creation
According to on-chain data, there was an 89% spike in the number of new addresses on the Cardano network between February 22 and February, with a massive 248% surge earlier in the month between February 1 and February 2. The surge in new wallets is seen as a bullish signal for ADA, signaling increased interest and potential investment in the cryptocurrency.
The number of new wallets added to the Cardano blockchain has been steadily increasing, with a spike from 1,706 on February 22 to 3,227 on February 23, and a larger spike from 1,553 on February 1 to 5,414 on February 2. Despite a slight slowdown in daily wallet creation since February 23, the numbers have remained consistently above 1,500 since the beginning of February. The total number of wallets registered on the Cardano network is now approaching 4.6 million addresses.
Active daily addresses on the Cardano network have surpassed 30,000 since the start of the year, reaching 64,568 active addresses on February 16. This growth in active addresses indicates a rising interest in the Cardano ecosystem and the native ADA token. The increased activity could lead to higher demand for ADA, potentially driving up its price in the near future.
Price Analysis and Potential Resistance
While ADA has recently broken past the $0.62 mark, trading at $0.6211 with a 6.23% increase in the past 24 hours and a 29.85% increase in the past 30 days, the path back to its all-time high of $3.1 remains challenging. ADA must overcome several price resistances, with the first hurdle being significant traction above $0.63. If successful, ADA could target a rise above $0.66, potentially reaching $1.20 if it maintains its position above $0.66.
Many long-term ADA holders (529,000 addresses) who purchased around the $1.20 price point may decide to sell at this level to break even. However, if adoption continues to grow and demand remains strong, ADA could potentially surpass this resistance level. The future price trajectory of ADA remains uncertain, and investors are advised to conduct thorough research and assess the risks before making any investment decisions.
By closely monitoring on-chain data, wallet creation, and adoption growth, investors can gain valuable insights into the potential price movements of Cardano (ADA) in the coming weeks and months. While the road to new all-time highs may be challenging, the increased interest and activity in the Cardano ecosystem suggest a positive outlook for the future of ADA.