Crypto analyst and trader Ali Martinez took to his Twitter handle to share his take on the path that the ADA price may take soon. He shared a screenshot with data provided by IntoTheBlock analytics company.
Cardano forms crucial support area, "higher highs" may be on horizon
According to data shared by IntoTheBlock, Cardano's native cryptocurrency ADA has created a major area of support between the $0.365 and $0.376 price levels.
Martinez added that between these two price marks, approximately 4.40 billion ADA were acquired by almost 92,000 wallets. He did not specify how long ago and during what period of time those purchases took place.
Now, the analyst adds, should this demand wall continue to hold, ADA may have big chances to reach higher levels in the near future.
#Cardano has formed a crucial support area between $0.365 and $0.376, where nearly 92,000 addresses purchased around 4.40 billion $ADA.— Ali (@ali_charts) January 29, 2023
As long as this demand wall holds, #ADA will have a good chance of reaching higher highs. pic.twitter.com/aYnvRot4PO
Djed stablecoin launch expected this week
This week is going to be important for Cardano as Input Output (the platform that created Cardano) and COTI (a decentralized platform for payments) are going to finally launch the much-anticipated stablecoin, Djed.
The release of this overcollateralized stablecoin is expected to add more fuel to the struggling DeFi system of Cardano by bringing a lot more liquidity into it.
The collateral range for Djed currently stands at 400-800%. Should it drop below the 400% level, the minting of new Djed stablecoins will become impossible.
SHEN coin will be able to help Djed hold its peg to the USD. Aside from this long-expected Djed release, Cardano founder Charles Hoskinson has recently stated that tons of dApps based on Cardano were to emerge online soon.
At the time of this writing, ADA is changing hands at $0.3788, showing a 2% drop in the past 24 hours. The community expects the ADA price to react to the launch of Djed and become another possible driver for a rise, in addition to the "demand wall" for ADA mentioned above.