Cardano's Price Surges 10% Amid Rising Network Activity

Cardano’s (ADA) price has surged by almost 10% over the past week, driven by increasing network activity and long-term holding trends. This surge indicates growing investor confidence as the broader market recovers. The daily count of active addresses on the Cardano network has risen by 12% over the past seven days, reflecting a steady increase in demand for the Layer-1 coin. This trend is a bullish signal, highlighting growing investor interest in ADA and potentially driving a sustained price rally.

New demand for ADA has also climbed, with the number of new addresses on the Cardano network increasing by 5% during the review period. This gradual increase in new demand indicates the entry of new investors or traders into the market, which could lead to higher liquidity and drive up the coin’s price. Additionally, ADA investors have increased their holding time by 78% over the past week, signaling an accumulation phase where traders are less inclined to sell. This trend reflects strong investor conviction, as ADA investors choose to hold on to their coins rather than sell, which could help reduce selling pressure in the ADA market and drive up its value in the short term.

ADA’s current setup suggests the potential for a sustained upside, with the coin’s Relative Strength Index (RSI) in an upward trend at 52.11. The RSI indicator measures an asset’s overbought and oversold market conditions, ranging between 0 and 100. Values above 70 indicate that the asset is overbought and due for a decline, while values below 30 indicate that an asset is oversold and due for a rebound. At 52.11 and climbing, ADA’s RSI readings suggest strengthening bullish momentum as buying pressure builds. If accumulation continues, the coin’s price could reach $0.97. However, if profit-taking commences, this bullish projection would be invalidated, and ADA’s price could dip to $0.64.