On-chain data shows that Cardano has experienced a significant spike in daily active addresses, marking the highest level of activity since March 2024.
Cardano’s native cryptocurrency ADA has suffered majorly in the current crypto market sell-off dropping out of the top ten crypto list with its market cap falling under $12 billion last week, However, Cardano (ADA) altcoin is showing strong signs of reversal with analysts expecting it to rally 20% to $0.40 following the recent double-bottom formation on the technical charts.
The daily chart of Cardano reveals a falling wedge pattern with its price finding key support at $0.312. Multiple lower-price rejection candles have prevented Cardano from closing below this baseline.
Photo: TradingView
Over the last weekend, the Cardano price witnessed a notable surge rising by 3.49% and 3.99% across two days. Even though the ADA price is trading at $0.3413 levels, it continues to face rejection at $0.349, pushing it back below the 20-day EMA, which now serves as a dynamic resistance.
Cardano’s current recovery is challenging the overhead resistance trend line. A successful breakout could see the price climb to $0.375, offering a potential 10% upside.
With the Chang hardfork upgrade, the Cardano blockchain has entered into the Voltaire era moving towards a greater decentralized and user governance model. The implementation of the Cardano Chang hardfork will happen in two phases. The first phase includes the formation of an interim Constitutional Committee in order to oversee the governance decisions. Besides, the second phase of implementation will happen 9- days after that involves transferring governance control to newly empowered bodies.
Cardano Network Activity on the Rise
As per the latest on-chain data, the daily network activity on the Cardano blockchain has been on the rise. Cardano has experienced a significant spike in daily active addresses, marking the highest level of activity since March 2024. Recent data from Santiment shows that ADA recorded 39,451 daily active addresses on September 6, indicating renewed interest in the network.
📊 As traders await a potential Bitcoin/crypto rebound, Cardano, Quant, and Holo are three notable assets seeing a sudden surge in address activity. When coins that are declining in value suddenly see rises like these, it historically raises the likelihood of a bounce. 📈 pic.twitter.com/udBULCmZYa
— Santiment (@santimentfeed) September 7, 2024
Historically, such increases in address activity have been followed by a rise in the token’s price. With Bitcoin and the broader crypto market positioned for a potential rebound, this surge could signal a strong recovery for Cardano in the coming weeks.
next