Cardano’s new wallet creation has recently seen a surge, with the total number of wallets approaching 4.6 million and the number of ADA stakers surpassing 1.3 million.
However, the ADA price has experienced a 6.3% decrease in the past week, and technical indicators suggest that it may continue to decline to $0.54.
The interest in Cardano’s network has led to a significant increase in new wallet creation. The majority of these new wallets belong to retail investors who hold up to ten ADA, as well as whales who possess over ten million tokens.
On February 23rd, the number of new ADA wallets surged to 3,227, almost twice as many as the previous day. Although this number slightly decreased on Sunday, the total number of ADA wallets continues to rise and currently stands at over 4.59 million.
The number of delegated wallets has also reached a new record high of 1.338 million. These wallets have staked some ADA and contribute to the security of the entire ecosystem through the proof-of-stake consensus mechanism.
Cardano has established itself as one of the leading networks for staking and participating in the consensus mechanism. Currently, over 62% of all ADA tokens are staked, and this percentage has not fallen below 60% this year. In comparison, the staking ratio on the Ethereum network is only 25.73%.
Data from IntoTheBlock indicates that most of the new wallets belong to retail investors. The number of wallets holding 1-10 ADA has increased slightly over the past 30 days. Additionally, there has been a rise in the number of wallets holding 10 million-100 million ADA, suggesting strong institutional interest in ADA.
Despite the strong fundamentals, the price of ADA has not reflected its performance. Currently, ADA is trading at $0.584, experiencing a 1% decrease in the past day and a little over 6% in the past week.
In the long term, technical indicators such as the Elliot Wave Theory suggest that ADA still has potential for bullish movement in its current wave, which is the fifth and final wave of the currency cycle. This theory indicates that ADA could reach $0.82 before undergoing a correction.
However, short-term indicators point to selling pressure. The relative strength index (RSI) is currently bearish, and in recent days, it has shown a bearish divergence, which typically precedes a price dip. The Awesome Oscillator (AO) and Moving Average Convergence Divergence indicator (MACD) are both in the red, further indicating that ADA may face additional correction.
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