- Cardano sell-off stalls, bulls eye $1
- Growing projects on the Cardano blockchain
- ADA crypto wallets grow amid institutional activity
The broader cryptocurrency market is in consolidation mode as short-sellers remain under pressure. After a recent pullback from April highs, cryptocurrencies are holding firm as accumulation gathers steam, signaling a potential bounce-back amid a stalled move lower.
Cardano is one of the coins showing signs of breaking out amid a string of positive developments that affirm renewed institutional and user interest. A surge in new projects built on top of the Cardano blockchain and new wallets over the past month continues to offer support to the token’s sentiments in the market.
Cardano near $1
ADAUSD is currently trading at a pivotal supply zone of $0.94. Bulls have jumped in after a recent correction from highs of $1.24 a coin at the start of the month. The 24% pullback has provided an attractive entry point for traders who missed out on the initial leg higher.
Following the pullback, the $0.91 has emerged as a short-term support level, above which ADAUSD remains bullish and likely to continue edging higher. A sell-off followed by a close below the support level could be catastrophic for bulls as it could trigger another leg lower to the $0.74 area in continuation of the long-term downtrend.
On the flipside, ADAUSD stabilizing above the $0.91 level increases the prospects of the coin rallying to April highs of $1.24. Cardano needs to rally and find support above the $1 level to affirm the emerging uptrend.
Projects growth on Cardano blockchain
The prospect of Cardano rallying is increasing by the day as the strong demand for the underlying blockchain becomes clear. Activities on the blockchain are on the rise going by the confirmation of 400 new projects.
Cardano creators say there are nearly 900 projects in development on the network, up from just 400 as of March. Currently, there are more than 500 projects built on the blockchain from non-fungible tokens collections as well as decentralized finance and new wallets.
An increase in the number of projects on the network only fuels demand for the underlying ADA coin, which acts as a medium of exchange. Soaring demand amid limited supply is only expected to fuel an uptick in price.
ADA crypto wallets growth
In addition to an increase in the number of projects, Cardano is also seeing solid growth in wallet activity. Data from Cardano Blockchain insights indicate that ADA wallets increased by 100,000 since March to 3.268 million.
The increase in wallets has also coincided with an uptick in wallet activity, affirming growing institutional activity. Cardano whales owning more than 10 million ADA tokens stands at about 46%, affirming institutional investors’ confidence about the token’s long-term prospects.
Cardano has carved a niche for itself as a layer one protocol for validating and finalizing transactions without the need for an intermediary. Its blockchain can process up to 250 transactions a second making it ideal for decentralized finance.
Final thoughts
Cardano is one of the most promising blockchain projects going by the growing number of institutional investors investing in the native ADA token. An increase in the number of projects on the blockchain and ADA wallets attest to the strong demand in the burgeoning crypto market.
While the coin is down by more than 50% in market value from all-time highs, it is still an attractive long-term play. The deep pullback provides an opportunity to buy the token cheaply as the growth trajectory is expected to continue.
