The on-chain data for Cardano (ADA) shows a significant increase in wallet activity and accumulation, indicating growing interest from potential investors. Smaller wallets holding $1 to $100 worth of ADA have increased by 237.44% in the last year, suggesting increasing retail interest. However, larger wallets in the $1,000 to $10,000 and $10,000 to $100,000 categories have seen decreases, indicating redistribution among different investor groups.

From a price perspective, ADA has broken important resistance at the 50 EMA and is now trading around $1.08 per share, with the potential for further gains. However, trading volume has been consistently declining, suggesting weak support for the recent price movements.

The holdings balance shows erratic patterns, with growth observed in addresses with less than $10, indicating an increase in smaller, more recent investors. Balances in higher categories, particularly those over $1 million, have declined, suggesting larger holders taking profits or redistributing funds.

While the increased interest and activity in Cardano is positive, declining trading volumes present challenges and limit the asset's ability to sustain long-term rallies. If the current trend continues, ADA may aim for the $1.20 resistance level in the coming weeks. Steady volume and wider market support will be crucial for Cardano to fully benefit from this momentum. Investors should closely monitor the $1.00 support and $1.20 resistance levels.



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