Cardano's ADA token climbed to $0.195 this week, up almost 26% over the past week, even as the number of active wallets kept falling. Large investors have been buying while retail confidence has not fully returned, and several analysts are now watching whether the rally can clear key resistance levels above current prices.
Cardano climbed to $0.195 this week, the highest level for ADA since July 4. The token gained almost 26% over the past week, one of the stronger moves in a choppy altcoin market.
The rally has come alongside declining wallet numbers and growing ecosystem activity, raising fresh questions about who is actually driving the demand behind it.
Buyers absorb supply as wallets shrink
Cardano has 7,070 fewer non-empty wallets than two months ago, according to Santiment's latest data. That suggests the recovery has happened while some holders remain on the sidelines.
Rising prices alongside falling holder numbers can indicate stronger buyers are absorbing supply, while retail confidence has not fully returned. Santiment found that the rebound also comes as the network stays active, with work continuing on the Leios testnet, Hydra scaling, Mithril upgrades, Pyth integration and fresh Catalyst funding.
Large investors accumulated more than 240 million ADA in just five days, according to Ali Martinez.
Analysts watch for confirmation above $0.28
JAVON MARKS compared the token's recent price action to its 2020-2021 performance and pointed to a possible move toward $2.90, though that target remains far above current levels.
Leon Voss said ADA has broken above a long-term descending trendline that had capped its price, though he stressed the importance of holding above $0.17.
Crypto Patel said ADA has completed one of the deepest corrections in its history and returned to a demand zone where the previous major rally began. He said a move above $0.28 would strengthen the bullish structure, while a break above $0.5 would offer further confirmation and a two-week close below $0.08 would invalidate the setup.
Source: CryptoPotato
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