Cardano has started to show signs of recovery after the harsh sales pressure in recent weeks. On-chain data revealed that the number of participants in the network is increasing and investor confidence is gradually strengthening.
The increase in the number of wallets came to the fore
According to Santiment data, the number of non-empty ADA wallets has increased by 14,783 since June 23. During the same period, the price of ADA increased from approximately $0.14 to close to $0.20. This movement indicates an increase exceeding 35 percent.
Mini dictionary: Santiment is an analytics platform that provides on-chain data, social sentiment and network activity metrics for the cryptocurrency market. The number of non-empty wallets is considered one of the basic indicators monitored to see whether the addresses holding the relevant asset are increasing.
This recovery comes after Cardano experienced one of its weakest performances in recent memory. While the negative atmosphere in the market put pressure on ADA for a long time, the asset fell to the lowest price regions in recent years.
Despite this, the increase in wallet activity showed that investors remained in the buying direction rather than leaving the ecosystem. The increase in the number of addresses held despite low prices indicated that long-term investors, in particular, continued to accumulate during the withdrawal period.
Resistance zone is observed in the technical view
Strengthening participation in the network may indicate an expansion of the user base in the ecosystem rather than short-term transactions. While this trend contributes to balancing the market, it also suggests that trust in Cardano has been re-established.
On the technical indicators side, conditions also seem to have improved somewhat. The sharp decline that started in May slowed down after buyers defended the support between $0.145 and $0.150. After this, the price rose to the resistance area in the $0.19 to $0.20 band.
Market analyst V noted that Cardano was one of the early major cryptocurrencies that produced an upside breakout from a bearish channel. The analyst evaluated that this view could be confirmed more strongly if the current movement turns into an Elliott Wave impulse structure.
Analyst V said that a short-term retreat may be seen after the initial bounce, but if the support levels are maintained, the upward attempt may continue. In this scenario, persistence above $0.20 could facilitate retargeting the $0.21 to $0.22 range.
Two indicators are being monitored for the permanence of the recovery.
The next phase for Cardano will depend on how buyers make this rise sustainable. The increase in the number of wallets, as well as the price movement, is being closely monitored. The strengthening of the user base within the network is considered an important signal that trust in the Cardano ecosystem is returning after a difficult period.
