- Cardano (ADA) maintains its crucial $0.35 support level, fueled by a substantial increase in transactions from both new and existing users.
- The ADA network is witnessing a consistent new user adoption rate above 30%, hinting at a possible early price rebound towards $0.40.
Cardano’s Steady Hold Amid Market Fluctuations
In the ever-evolving cryptocurrency market, Cardano (ADA) has shown remarkable resilience, consistently holding above the $0.35 support mark. This stability is particularly noteworthy given the recent failure of ADA’s price to break through the $40 resistance level during last week’s altcoin market rally.
New User Influx: A Sign of Growing Confidence
Despite the price correction phase, Cardano’s ecosystem continues to attract new users at an impressive rate. On-chain analysis, particularly data from IntoTheBlock, reveals a notable uptick in new user adoption. The ADA network experienced a peak in new user adoption rate at 32.3% on November 9, maintaining above 30% in the subsequent days. This level of new user engagement has only been matched eight times in the past three months.
The significance of the new adoption rate lies in its representation of the percentage of addresses executing their first transaction on a specific day. This metric sheds light on the increasing interest in Cardano, especially during a period of price correction.
Sustained Activity by Existing Users
Alongside the new users, existing Cardano network participants have also been notably active. The active addresses ratio, which indicates the proportion of total users engaging in transactions, has remained above 0.8% over the past ten days. This heightened level of activity, maintained even during a downtrend in price, is often viewed by strategic investors as a bullish signal.
Potential Implications for ADA’s Price Trajectory
The combined effect of high transactional activity from both new and existing users is potentially heating up demand within the Cardano network. If this trend continues, it could pave the way for an early rebound in ADA’s price.
Further supporting this optimistic outlook is the Global In/Out of the Money (GIOM) data. This data classifies current ADA holders based on their entry prices, revealing a robust support buy wall around the $0.35 level. Specifically, 203,400 holders have accumulated 1.79 billion ADA at an average price of $12.24. If these investors maintain their positions, a swift ADA price recovery might ensue.
Conversely, should the bears overpower this buy wall, ADA’s price could decline towards $0.30. However, if ADA overcomes the $40 mark, it could face resistance from holders who purchased at an average price of $0.38. Overcoming this barrier might lead to a rally towards the $0.40 threshold.
In summary, Cardano’s network is exhibiting robust user activity amidst market fluctuations, setting a potentially bullish stage for ADA‘s price movement. As the cryptocurrency world watches, the interplay of new user adoption and sustained existing user activity could significantly influence Cardano’s market trajectory.
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