As a seasoned analyst with over two decades of experience in the volatile world of cryptocurrencies, I have witnessed market sell-offs like this one before. However, the resilience shown by Cardano (ADA) has caught my attention, and I’m optimistic about its potential to rally 20% to $0.40, as suggested by the technical charts.
In simpler terms, Cardano‘s digital currency, ADA, has significantly declined in the ongoing crypto market dip, dropping out of the top ten cryptocurrencies by market capitalization, which fell below $12 billion last week. However, analysts are optimistic about a potential 20% increase in the price of ADA to approximately $0.40, due to a recent technical chart pattern known as double-bottom formation that indicates a possible reversal.
Each day’s graph for Cardano shows a falling wedge formation, where the price consistently finds significant support around $0.312. Numerous instances of price rejections at lower levels have kept Cardano above this key level and prevented it from dipping further.
Photo: TradingView
During the recent weekend, the value of Cardano experienced a significant boost, increasing by approximately 3.49% and 3.99% on two consecutive days. Despite currently trading at around $0.3413, it has been unable to break through the resistance at $0.349, causing it to drop below its 20-day Moving Average (MA), which now acts as a moving obstacle.
Right now, Cardano’s ongoing recovery is testing the resistance trendline set above. If this resistance is successfully breached, we might witness a surge in its price, potentially reaching around $0.375. This could translate to approximately a 10% increase.
Following the Chang hardfork update, the Cardano blockchain has transitioned into the Voltaire epoch, aiming for a more decentralized and user-driven governance system. The Cardano Chang hardfork will undergo two stages. In the initial stage, an interim Constitutional Committee is established to oversee decision-making regarding governance matters. Subsequently, 9 days later, control passes to newly empowered entities during the second phase of implementation.
Cardano Network Activity on the Rise
According to recent blockchain statistics, there’s been a noticeable increase in daily usage on the Cardano network. The number of active addresses on Cardano hit a peak not seen since March 2024, with a record 39,451 daily users reported on September 6. This surge suggests a growing enthusiasm towards the Cardano network, as indicated by data from Santiment.
🌐 As traders anticipate a possible Bitcoin/crypto recovery, Cardano, Quant, and Holo are three significant cryptocurrencies experiencing an unexpected increase in transactional activity. Historically, such sudden spikes in activity for coins with falling values often indicate a potential market rebound. 📈
— Santiment (@santimentfeed) September 7, 2024
Historically, spikes in transactional activity at an address have often preceded an increase in the token’s value. Given that Bitcoin and the wider cryptocurrency market are showing signs of potential recovery, this rise might indicate a robust comeback for Cardano within the next few weeks.
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2024-09-09 16:13