New ADA Addresses Jump To 202% As The Coin Aims Yearly Highs

New ADA addresses to jump to 202% while the coin prepares to hit new yearly highs while a massive supply barrier is keeping the coin from breaking out. A mass inflow to the network could be able to cut through it so let’s read more in today’s Cardano ADA news.

Cardano’s price action was contained in its 200 and the 100-day moving average over the past few months but now it slowly approaches a critical resistance barrier with several on-chain metrics favoring the bulls. Moving past the $0.11 level could see the prices increase towards $0.125 or higher. Multiple on-chain metrics suggest that Cardano’s ADA is poised to advance further. Still, ADA has to overcome the final resistance barrier before hitting new highs.

Cardano entered a steep corrective period after reaching new yearly highs in July. The so-called ETH killer saw its price drop more than 50% within two months. It went from trading at a high of $0.155 to a low of $0.0755 on September. The 200-day moving average managed to keep falling prices at bay and even served a rebound zone. Bouncing off the trend index led to a 51% upswing towards the 100-day moving average during October which also managed to hold. ADA’s monthly price action has however been contained between these two barriers since then.

The smart contract token is trying to slice over the overhead resistance to recover the lost ground but this will of course not be easy. IntoTheBlock’s IOMAP model reveals that the 100-day moving average presents a huge supply barrier to overcome. The new ADA addresses increased as well while based on this on-chain metric more than 20,000 addresses purchased about 3.6 billion ADA between $0.071 and $0.112.

The holders in this price range will exit some of their underwater positions and put more downward pressure. Still, if the increase in demand is bigger, Cardano could slice through this resistance wall and will aim for the $0.125 and $0.13 hurdle. The bullish thesis holds looking at ADA’s network growth. Market participants are re-entering the market at a substantial rate as reflected in the price increase as well as the new daily address. more than 8000 new addresses are joining the network which represents a 202% jump in the past three days.

The sudden uptrend in this metric suggests an increase in user adoption over time so network growth is often regarded as one of the most accurate forecasters of price. When the network expands for a longer time, the rising prices usually follow.