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Massive Cardano demand wall could push ADA price toward higher highs

Massive Cardano demand wall could push ADA price toward higher highs

As the bullish optimism in the cryptocurrency sector starts to quiet down, Cardano (ADA) has been recording high demand from crypto traders and investors, projecting a strong possibility of a price increase should this trend sustain.

Specifically, close to 92,000 addresses have purchased nearly 4.4 billion Cardano as it formed a crucial support area between $0.365 and $0.376, demonstrating a demand wall that offers an opportunity for ADA to reach higher highs, prominent crypto expert Ali Martinez said on January 29.

Specifically, the graphic posted by Martinez shows 91,940 addresses buying Cardano at the average price of $0.371, the total volume of the trades amounting to 4.39 billion ADA, and 77.69% of these addresses being in profit.

Addresses purchasing Cardano at specific price level. Source: Ali Martinez

Cardano’s profitability recognized

At the same time, Martinez also explained that, since Cardano surpassed the $0.38 level on January 21, roughly 31 addresses holding between 1,000,000 and 100,000,000 ADA have sold or redistributed their ADA tokens, citing on-chain data retrieved from blockchain analytics platform Santiment

ADA holdings purchase and redistribution. Source: Ali Martinez

Earlier, Finbold reported on the Cardano network growing by more than 50,000 wallets between January 1 and January 25, as $4.5 billion flooded its market capitalization, in addition to emerging as the third most developed blockchain by notable GitHub commits during the last month.

Network’s continuous growth

By January 29, Cardano had added another 7,173 wallets, accumulating a total of 3,901,908 wallets, despite a brief ‘blip’ clarified by the Cardano founder Charles Hoskinson, according to the data retrieved by Finbold from Cardano Blockchain Insights on January 30.

At the time of publication, ADA was changing hands at the price of $0.3801, which represents a decline of 2.5% on the day, but still an increase of 0.36% across the previous week, adding up to the accumulated gain of 54.05% over the past 30 days.

Should ADA pass a crucial barrier at $0.40, and the network continues to implement innovations such as the first-ever smart contract written in a Pythonic language, as well as the announced launch of the Djed stablecoin (in addition to other updates), its digital asset could look forward to hitting $1 in the future.

Cardano 30-day price chart. Source: Finbold

In the meantime, Cardano’s market cap stood at $15.71 billion, retaining its rank as the eighth-largest cryptocurrency by this indicator, retaking its position from Dogecoin (DOGE), as per the latest CoinMarketCap data accessed on January 30.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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