Cardano Records 50,000 New Wallets – Will ADA Price Soar?

Cardano has recorded an excellent price trend for the last few days. Despite a slight pullback in the price, it still shows enormous signs of promise. One of the factors driving this charge is its developmental strides, as the network recently launched its sidechain toolkit.

The Cardano Network has become a developer’s hub and allows users to build Decentralized Applications (dApps) on its blockchain. Its increasing utility may have translated into a growing interest in the project.

New Wallets Added To The Network

Cardano has seen its market share increase considerably, adding over 50,000 wallets to its protocol this month. Yevhen, a Cardano ambassador, was delighted to share these statistics on Twitter. He stated that the total Cardano wallets increased from 3,842,867 on January 1 to 3,894,735 registered wallets by January 25, 2023.

This growth reflects increased adoption of ADA and more on-chain activity among users. Cardano’s market cap has also exploded from $8.48 billion recorded late last year to $13 billion today. After the launch of its Sidechain Toolkit, Cardano developers hinted at a launch date for its Djed stablecoin project.

Shahaf Bar-Geffen, in an update from the COTI network, announced on January 25 that the Cardano stablecoin Djed would launch next week. Although the date was unclear, a timeline was created for the Cardano community. 

Djed is a stablecoin that the developers intend to power the Cardano ecosystem. COTI, in partnership with Cardano’s Input Output (IOG) team, has developed the stablecoin. The coin yet to be launched is linked with over 40 partners for its proper utilization.

The COTI network stated that it was putting the finishing touches as the chain index syncing process commenced over a week ago. The developers said they intend to include a snapshot mechanism in their User Interface (UI). Other features have been added and will unravel when the token launches.

Cardano (ADA) – Where Is The Price Headed?

ADA’s positive momentum has slowed today as it hovers close to the $0.385366 resistance zone. Nevertheless, the price performance in the past week has been positive, with an uptrend formed on the charts. Cardano is trading at $0.3860, with a decline. However, this price correction will likely be for the short term.

ADA is trading above its 50-day Simple moving average (SMA) but below its 200-day SMA. Expect the price of the asset to record short-term gains and likely trade above its 200-day SMA in the coming weeks.

The support levels are $0.358996, $0.365308, and $0.372181, while the resistance levels are $0.385366, $0.391677, and $0.398550. ADA surpassed these resistance levels in the past when it attained its all-time high value of $3.10. With the developmental strides of the network, it might get closer to its ATH value.

The Relative Strength Index (RSI) value is 69.26, close to the overbought region. However, this indicator might retrace into its channel if bearish pressure persists.

The Moving Average Convergence Divergence (MACD) is above its signal line but shows convergence. It reflects the bearish pressure noted on the price charts today. Expect ADA’s price to drop before it resumes its uptrend. The launch of its Stablecoin, acceptance, and adoption can aid its price momentum. 

But note that crypto assets are highly volatile and can deviate from past price history. Therefore, proper research and analysis are vital before investing.

Featured Image From Pixabay/AnTa_ranga, Charts From Tradingview