Cardano (ADA) could be on the path to breaking 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 seen multiple spikes on various days since the beginning of February, showing a potential influx of new money into Cardano.
According to on-chain data, new addresses on the Cardano network spiked 89% between February 22 and February. Similarly, this metric witnessed a 248% surge earlier in the month between February 1 and February 2. Such a huge influx of new wallets is a very bullish signal for ADA.
Cardano Metrics Points To Increased Interest
One of the major factors to consider when considering the adoption rate of cryptocurrencies is the amount of new wallets created. According to on-chain data, the number of new wallets added to the Cardano blockchain spiked from 1,706 on February 22 to 3,227 on February 23. Similarly, this metric witnessed a larger spike from 1,553 on February 1 to 5,414 on February 2.
While the number of new wallets created daily has slowed down since February 23, it has steadied above 1,500 since the beginning of February. The total number of wallets registered on the Cardano network has also been steadily climbing and is almost at 4.6 million addresses.
Active daily addresses have climbed above 30,000 since the beginning of the year, recently reaching 64,568 active addresses on February 16. This growth on the back end shows that interest in the Cardano ecosystem is skyrocketing as more people want to get their hands on the native ADA token. This could translate into more demand for ADA, leading to a price increase.
ADA To Reclaim $3.1 Price Level?
ADA holders have been left wondering if the price can revisit its all-time high above $3.1 this year. After ranging and trading mostly $0.6 last week, ADA has now broken past the $0.62 mark again after a 6.99% influx into the entire crypto market. At the time of writing, Cardano is now trading at $0.6211, up by 6.23% in the past 24 hours and up 29.85% in the past 30 days.
However, ADA’s path back to the all-time high of $3.1 remains difficult, as it must overcome numerous price resistances. The first stage would be to get significant traction above $0.63. If successful, ADA might launch a new rise above $0.63, reaching $0.66 for the first time since December 2023.
As long as Cardano stays above $0.66, it is in good shape to eventually reach $1.20. Many long-term holders (529,000 addresses) who bought around this price point would likely sell here to break even. But if adoption increases and demand is strong enough, ADA could power right through.
ADA price at $0.619 | Source: ADAUSD on Tradingview.com
Featured image from Eightcap EN, chart from Tradingview.com
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