Cardano’s price continues to consolidate above the $0.35 support zone. An In-depth on-chain analysis provides insight into the next ADA price action.
ADA price failed to break above the $40 area amid last week’s altcoin market rally. Recent on-chain data readings show that Cardano network participants have not thrown in the towel.
Cardano Continues to Attract New Users.
Cardano price slid into a consolidation phase after failing to clear the $40 resistance last week. However the ongoing ADA price correction has not discouraged new users from trooping into the Cardano ecosystem. The IntoTheBlock chart below shows that new user adoption rate has remained relatively high over the past week.
ADA new user adoption rate reached a monthly peak of 32.3% on Nov. 9. As depicted below, it has remained above 30% in each of the subsequent five days, a feat it only achieved eight times in the last three months combined.
Cardano (ADA) New Adoption Rate | Source: IntoTheBlock
The new adoption rate metric evaluates the percentage of addresses on a blockchain network that made their first-ever transaction on a given day. This provides insights into the rate at which new users have been trooping in to the Cardano network amid the ongoing price correction.
This suggests the newcomers’ transactions have been pivotal in helping ADA price maintain the vital $35 support level over the past week.
Read More: Best Crypto Sign-Up Bonuses in 2023
Network Usage Is Heating Up Amid Correction Phase
Interestingly, the rising transaction activity has not been limited to the new entrant alone. On-chain data readings show that existing participates are also performing an unusually high number of transactions. As depicted below, Cardano active addresses ratio has trended above 0.8% in each of the last 10 days, dating back to Nov. 5.
.
Cardano (ADA) Active Addresses Ratio. Source: IntoTheBlock
The active addresses metric captures the percentage share of total existing users that performed at least one transaction on a given day. Strategic investors consider it a bullish signal when user activity ratio remains high during a price downtrend.
In summary, the rising transactional activity among new joiners and existing market participants could heat up Cardano network demand in the days ahead. And if it persists, the bulls could capitalize to force an early ADA price rebound.
Read More: Top 9 Telegram Channels for Crypto Signals in 2023
ADA Price Prediction: Early Rebound From $0.35?
Drawing inferences from the on-chain metrics analyzed above, Cardano price looks set to rebound toward $0.40, if the bulls can endure the ongoing consolidation phase.
The Global In/Out of the Money (GIOM) data, which groups the current ADA holders according to their entry prices, also affirms this positive forecast.
It, shows that the bulls have mounted a formidable support buy wall around the $0.35 area. As depicted below, 203,400 holders had bought 1.79 billion ADA at the average price of $12.24. If those investors HODL firmly, they could trigger an instant ADA price rebound as predicted.
But if the bears can push buy wall aside, ADA price could tumble toward $0.30.
Cardano (ADA) Price Prediction. GIOM data. Source: IntoTheBlock
Conversely, the bulls could wrestle control of the market again, if ADA price scales $40. But, in this case, the 53,630 holders that bought 2.2 billion ADA at the average price of $0.38 could mount a resistance. if that resistance gives way, ADA price will likely rally toward $0.40.
Read More: Best Upcoming Airdrops in 2023
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BeingCrypto – https://beincrypto.com/cardano-ada-price-could-reclaim-0-40/
