CDS Crypto News Cardano’s On-Chain Analysis Points to Potential Price Rebound Above $0.35 Support
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Cardano’s On-Chain Analysis Points to Potential Price Rebound Above $0.35 Support

Cardano's Price Consolidation above Key Support at $0.35

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Cardano'S On-Chain Analysis Points To Potential Price Rebound Above $0.35 Support

Cardano’s On-Chain Analysis Points to Potential Price Rebound Above $0.35 Support

Crypto News – Cardano’s recent performance has seen it consolidate above the crucial support level of $0.35. In-depth on-chain analysis sheds light on the potential future price action of ADA.

Despite the recent rally in the altcoin market, ADA struggled to breach the $40 resistance level last week. However, insights from recent on-chain data suggest that participants in the Cardano network remain engaged and committed.

Cardano Continues to Attract New Users

Following its unsuccessful attempt to overcome the $40 resistance, Cardano’s price entered a consolidation phase. Nevertheless, the ongoing correction in ADA’s price hasn’t deterred new users from joining the Cardano ecosystem. The chart from IntoTheBlock illustrates that the rate of new user adoption has remained remarkably high over the past week.

Cardano'S On-Chain Analysis Points To Potential Price Rebound Above $0.35 Support

On November 9th, the ADA new user adoption rate reached a monthly peak of 32.3%. Impressively, it has maintained levels above 30% for the subsequent five days, a feat achieved only eight times in the last three months combined.

This metric measures the percentage of addresses on the Cardano blockchain that executed their very first transaction on a given day. It provides valuable insights into the rate at which new users are embracing the Cardano network, even during a price correction.

This data suggests that the transactions initiated by newcomers have played a pivotal role in helping ADA’s price maintain its critical support level of $35 over the past week.

Increased Network Usage During Correction

Interestingly, the surge in transaction activity is not limited to new entrants alone. On-chain data reveals that existing participants have also been conducting an unusually high number of transactions. As shown below, Cardano’s active addresses ratio has consistently exceeded 0.8% for the past ten days, dating back to November 5th.

Cardano'S On-Chain Analysis Points To Potential Price Rebound Above $0.35 Support

The active addresses metric measures the percentage of total existing users who executed at least one transaction on a given day. Strategic investors often view this as a bullish signal when user activity remains robust during a price downtrend.

In Summary

The growing transactional activity among both new users and existing market participants could increase demand for the Cardano network in the coming days. If this trend continues, it may provide an opportunity for the bulls to initiate an early rebound in ADA’s price.

ADA Price Prediction: Potential Early Rebound from $0.35?

Based on the insights derived from the on-chain metrics discussed above, Cardano’s price appears poised for a potential rebound towards $0.40, provided that the bulls can withstand the ongoing consolidation phase.

Global In/Out of the Money (GIOM) data, which categorizes current ADA holders based on their entry prices, also supports this positive outlook. It indicates that the bulls have established a robust support level around $0.35. As depicted below, 203,400 holders have purchased 1.79 billion ADA at an average price of $12.24. If these investors remain committed to holding their positions, it could trigger an immediate price rebound for ADA, as predicted.

However, if the bears manage to break through this support level, ADA’s price could potentially decline towards $0.30.

Conversely, if ADA’s price surges past $40, it may encounter resistance from the 53,630 holders who acquired 2.2 billion ADA at an average price of $0.38. If this resistance is overcome, it is likely that ADA’s price will rally towards the $0.40 mark.

Cardano'S On-Chain Analysis Points To Potential Price Rebound Above $0.35 Support

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