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- ADA’s rising network activity and longer holding times signal growing investor confidence and potential price growth.
- With strong buying pressure and futures market data supporting bullish sentiment, Cardano may soon break past key resistance levels.
Cardano (ADA) has seen a notable rise in investor confidence, reflected in its increased network activity and longer holding times. As ADA has surged nearly 10% in the past week, these trends signal a shift in investor behavior, hinting at the potential for further growth.
With a broader market recovery and more demand for ADA, both long-term holders and traders have shown a marked increase in their activity. The rise in active addresses, coupled with growing investor conviction, could set the stage for ADA’s price to reach new highs soon.
Rising Network Activity Indicates Growing Demand
In the past week, Cardano’s network activity has grown significantly. According to IntoTheBlock, the number of active addresses on the network has risen by 12%, reflecting an uptick in user engagement and demand for ADA. The increase in daily active addresses suggests that more investors are turning to Cardano, which is often seen as a positive signal for long-term price growth.
Moreover, new addresses on the Cardano network have also grown by 5%. This indicates that new investors are entering the market, likely contributing to the demand that has been pushing ADA’s price upward. Such growth in new user activity is critical for maintaining price momentum and bolstering ADA’s market position as new participants increase both liquidity and trading volumes.
Holding Time Surge Shows Investor Conviction
A key metric signaling a potential upswing for Cardano is the rise in its holding time, which has surged by 78% in just one week. Holding time, which measures how long investors keep their ADA before selling, is an important indicator of market sentiment.
A sharp increase in holding time typically reflects a reduction in selling pressure, as investors choose to hold their assets in anticipation of higher future returns.
This increase in holding time indicates that many ADA investors are growing increasingly confident in the asset’s future. With fewer coins being sold, this could lead to a supply squeeze, potentially driving up the price. As long-term holders accumulate more ADA, they reduce the likelihood of a price dip caused by selling, which could support sustained growth in ADA’s price.
ADA’s Momentum and Potential for a Breakout
As of now, Cardano is trading around $0.76, with a 4% gain over the past 24 hours. Its Relative Strength Index (RSI) is showing a neutral trend, sitting near 50.11. RSI values above 50 suggest that ADA is experiencing increasing buying pressure, which could pave the way for further price growth.
Currently, ADA’s immediate resistance level lies around $1.90, with analysts eyeing this as a critical price point. A successful breakout above this resistance level could send Cardano’s price toward the $2 mark, a level that many traders are watching closely.
The futures market data also supports this bullish outlook, as open interest in ADA futures has reached $785.91 million, indicating increased speculative activity.
The broader market’s recovery, particularly Bitcoin’s upward momentum, also plays a key role in ADA’s future. As Bitcoin prices rise, altcoins like Cardano tend to follow suit, often experiencing correlated growth. If Bitcoin continues its bullish trend, as some experts predict it could reach $110,000, Cardano may benefit from the increased market confidence, pushing ADA’s price toward its next milestones.
