Coinspeaker
Cardano’s ADA Sets Sights on 20% Surge as Network Activity Increases
Cardano’s native cryptocurrency ADA has faced significant challenges in the ongoing crypto market downturn, slipping from the top ten cryptocurrencies with its market cap dropping below $12 billion last week. However, the Cardano (ADA) altcoin is displaying strong reversal signs, with analysts predicting a 20% rally to $0.40 following a recent double-bottom pattern observed on the technical charts.
The daily chart for Cardano illustrates a falling wedge pattern, with its price finding crucial support at $0.312. A series of rejection candles at lower price levels have kept Cardano from closing beneath this critical threshold.
Photo: TradingView
During the past weekend, the price of Cardano saw a significant increase, rising by 3.49% and 3.99% over two days. Although the ADA price is currently trading at $0.3413, it continues to struggle against resistance at $0.349, which has pushed it back below the 20-day EMA, now acting as a dynamic resistance level.
Cardano’s ongoing recovery is testing the resistance trend line above. A successful breakout could propel the price to $0.375, signifying a potential upside of 10%.
With the introduction of the Chang hardfork upgrade, the Cardano blockchain has entered the Voltaire era, aiming for greater decentralization and a user governance model. The implementation of the Cardano Chang hardfork will occur in two phases. The first phase will establish an interim Constitutional Committee to oversee governance decisions, while the second phase, occurring nine days later, will transfer governance power to newly empowered bodies.
Rising Activity on the Cardano Network
Recent on-chain data indicates an increase in daily network activity on the Cardano blockchain. Cardano has seen a notable rise in active daily addresses, reaching the highest levels of activity since March 2024. Recent figures from Santiment reveal that ADA recorded 39,451 daily active addresses on September 6, showing renewed interest in the network.
📊 As traders anticipate a possible Bitcoin/crypto recovery, Cardano, Quant, and Holo are three prominent assets experiencing a sudden uptick in address activity. Historically, when coins facing declines see such increases, it raises the probability of a bounce. 📈 pic.twitter.com/udBULCmZYa
— Santiment (@santimentfeed) September 7, 2024
Historically, increases in address activity have typically been followed by price rises of the token. With Bitcoin and the broader crypto market positioned for a potential rebound, this surge may indicate a strong recovery for Cardano in the upcoming weeks.
Cardano’s ADA Sets Sights on 20% Surge as Network Activity Increases
