Cardano has recently experienced a surge in the creation of new wallets, bringing the total number of wallets close to 4.6 million. Additionally, the number of wallets participating in staking ADA has surpassed 1.3 million.
Despite these positive developments, the price of ADA has declined by 6.3% in the past week. Technical indicators suggest that further losses are likely, with the price potentially dipping to $0.54.
The increasing interest in the Cardano network has led to a significant rise 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 hold over ten million tokens.
On February 23, the number of new ADA wallets surged to 3,227, almost double the previous day’s count of 1,776. Although this number decreased on Sunday, the total number of ADA wallets continues to rise and currently exceeds 4.59 million.
The number of delegated wallets, which are wallets that have staked ADA and participate in the proof-of-stake consensus mechanism, has reached a record high of 1.338 million. These wallets play a crucial role in enhancing the security of the entire ecosystem.
Cardano boasts one of the most dedicated staking ecosystems, with over 62% of all ADA tokens currently staked. This percentage has remained above 60% throughout the year, in contrast to the staking ratio of 25.73% on the Ethereum network.
Data from IntoTheBlock indicates that the majority of new wallets belong to retail investors. The number of wallets holding 1-10 ADA has seen a slight increase over the past 30 days. Additionally, there has been an increase in the number of wallets holding 10 million-100 million ADA, suggesting continued institutional interest in ADA.
Although the fundamentals of Cardano remain strong, the price of ADA has not reflected its performance. Currently trading at $0.584, ADA has experienced a 1% dip in the past day and a 6% decline in the past week.
Despite this short-term decline, technical indicators, such as the Elliot Wave Theory, suggest that ADA still has bullish momentum in its current wave. According to this theory, ADA is expected to reach $0.82 before undergoing a correction.
However, short-term indicators indicate selling pressure. The relative strength index (RSI) is currently bearish and has shown a bearish divergence in recent days, which often precedes a price dip. Additionally, the Awesome Oscillator (AO) and the Moving Average Convergence Divergence indicator (MACD) are in the red, indicating further correction for the cryptocurrency.