Crypto Insights: Cardano’s ADA Poised to Reach $0.30 and Beyond on Strong On-Chain Activity

Crypto Insights: Cardano’s ADA Poised to Reach $0.30 and Beyond on Strong On-Chain Activity

Crypto News – Cardano (ADA) has been steadily approaching the $0.30 mark as the network’s participants actively engage in network activities. On-chain indicators are shedding light on potential ADA price movements in the upcoming weeks.

In terms of on-chain data, Cardano has made a strong start to October, reaching a new peak in ADA staking for H2 2023. This surge in ADA staking seems to be a significant factor driving the recent uptick in price, with Cardano hitting a 30-day peak of $0.28 on October 2.

The chart illustrates a notable increase in ADA staking, rising from 62.74% to 63.5% between September 27 and October 5. In absolute terms, ADA holders have staked an additional 0.8% of ADA coins within the first week of October. This increase could be a positive response from the ecosystem to Cardano’s recent intensified development activities.

Staking activity is a crucial metric that tracks real-time changes in the number of coins investors have locked up in smart contracts to secure the network. Generally, increased staking has a positive impact on the native coin’s price, as it signifies enhanced network security and reduced market supply.

Notably, the current staking activity of 63.5% is the highest level observed since June 22, 2023. With more coins temporarily locked out of circulation, ADA’s price could potentially accelerate above $0.30 if market sentiment turns bullish.

The rise in network demand further corroborates this bullish outlook for ADA. On-chain data reveals a notable increase in network demand, reaching a 4-month peak of 3,860 new wallet addresses created on October 2. The influx of new participants into the Cardano ecosystem has remained consistently high throughout the month, with 11,383 new wallets created in the past week.

Analyzing the daily wallet creation provides insights into the blockchain network’s ability to attract new users. This surge in new users often translates into increased market demand for the underlying native coin. As anticipated, this demand has propelled ADA’s price above the $0.25 resistance this month. If Cardano’s staking activity continues to surge, the next wave of bullish market demand could propel ADA to reclaim $0.30.

Predicting ADA’s price trajectory, it appears ADA is on track to reach $0.30 in its next bullish rally. Supporting this prediction is the Global In/Out of Money Around Price data, illustrating the entry price distribution of wallets currently holding ADA. The data suggests that surpassing the initial resistance at $0.29 could potentially propel ADA’s price rally towards a realistic target of $0.35.

For instance, 509,000 addresses have acquired 5.7 billion ADA at a minimum price of $0.29. If these holders decide to close their positions as Cardano’s price approaches $0.30, it could inadvertently slow down the bullish price action. However, if Cardano staking activity and network demand continue to intensify, ADA’s price could rally towards the $0.35 range as predicted.

On the other hand, a bearish scenario could invalidate this bullish narrative if ADA’s price reverses below $0.23. Nonetheless, it’s worth noting that 358,600 addresses have purchased 5.2 billion ADA at a maximum price of $0.25, forming a significant support buy-wall. If this crucial buy-wall is breached, it could trigger a prolonged Cardano price reversal towards $0.23.