Cardano (ADA) Witnesses Surge in New Wallet Creation, Reflects Growing Interest

• Cardano has witnessed a rise in new wallet creation recently, with the total number of wallets inching closer to 4.6 million and those involved in staking ADA breaking past 1.3 million.
• However, the ADA price dipped 6.3% in the past week, with technical indicators showing that it’s likely to suffer further losses and dip to $0.54.

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Cardano has recorded a surge in new wallet creation in recent days as interest in the network continues to rise. The highest number of new wallets were the retail investors holding up to ten ADA and the whales who hold over ten million tokens.

On Feb. 23, the number of new ADA wallets surged to 3,227, nearly twice as high as the 1,776 recorded the previous day. While this number dipped on Sunday, the total ADA wallets have continued soaring and at press time, were north of 4.59 million.

The number of delegated wallets now stands at 1.338 million, a new record high. These are wallets that have staked some ADA and participate in the proof-of-stake consensus mechanism, playing a part in increasing the security of the entire ecosystem.

Cardano has one of the most dedicated ecosystems when it comes to staking and participating in the consensus mechanism. At press time, over 62% of all ADA tokens are staked; the percentage of staked tokens hasn’t dipped below 60% this year. For context, the staking ratio on the Ethereum network is 25.73%.

Data by IntoTheBlock further reveals that most of the new wallets are retail investors. The blockchain data portal shows that the number of wallets holding 1-10 ADA increased over the past 30 days, albeit marginally. The only other bracket that recorded a rise was those holding 10 million-100 million ADA.

This shows that retail investors continue to take an interest in Cardano as a transactional network (10 ADA is worth $5.84 and is not seen as an investment). The whales, holding over 10 million tokens, worth over $5.8 million, have also been stacking up, showing institutional interest in ADA remains strong.

Cardano (ADA) Price Dips

While the fundamentals remain strong, the price of ADA has not reflected the performance. At press time, ADA trades at $0.584, dipping by 1% over the past day and just over 6% in the past week.

In the longer term, technical indicators such as the Elliot Wave Theory signal that ADA still have some bullish movement left in its current wave, which is its fifth and last in the currency cycle. This theory indicates that ADA should record gains to hit $0.82 before correcting.

However, short term indicators signal selling pressure. The relative strength index (RSI) is currently bearish and in the past few days, it created a bearish divergence, which usually precedes a price dip. Its Awesome Oscillator (AO) and the Moving Average Convergence Divergence indicator (MACD) are in the red, as shown in the graph below, indicating the crytpo will face further correction.

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