In a surprising twist, Cardano (ADA) has leapfrogged Ethereum to claim the third spot in global development activity, according to recent data from Santiment. This surge comes amid the ongoing rollout of the Chang hard fork, a pivotal upgrade that is reshaping Cardano’s governance and security structures. While ADA’s price has struggled, dropping 60% from its yearly high of $0.80, this increase in developer activity has sparked renewed optimism among investors. Many are now speculating that Cardano could be on the brink of a major bullish reversal.
Cardano’s Rising Developer Engagement
Over the past 30 days, Cardano’s development activity has outpaced Ethereum, achieving a score of 452.85. This surge reflects the ongoing upgrades and projects within the Cardano ecosystem, driven by the momentum gained from the Chang hard fork. However, the adoption of this crucial update is still in progress. According to Cardanoscan’s Chang Readiness page, 67% of exchanges have yet to begin the upgrade process, 27% are currently working on it, and only 5%—just three exchanges—have completed the update.
Technical Indicators Point to a Potential Rebound
Despite the recent price decline, technical analysis suggests that ADA may be nearing a turning point. On August 5, ADA reached a low of $0.25 but quickly rebounded by 23% to $0.34. This price action, coupled with the Relative Strength Index (RSI) dropping into oversold territory, indicates a possible resurgence of buying interest.
The presence of a long wick on the daily candle from August 5 suggests that buyers are stepping back into the market, fueling speculation that ADA could be poised for a bullish phase. A successful break above the descending resistance around $0.40 would provide strong evidence of a new upward trend. However, failure to clear this level could result in further downside.
The Broader Market Context
While Cardano’s achievements in developer activity are noteworthy, the broader cryptocurrency market remains volatile. The mid-March downturn saw prices plummet by 25% from their peak, impacting many projects, including Cardano. However, Cardano has managed to maintain a high level of on-chain activity, processing $7.2 billion in daily transactions. This robust activity, coupled with long-term holders controlling 40% of ADA’s supply, highlights the network’s resilience.
What’s Next for Cardano?
With the Chang hard fork still in the process of being fully implemented across exchanges, Cardano is gradually transitioning into the “Age of Voltaire,” a new phase focused on decentralized governance. The introduction of Delegate Representatives (DReps) and the drafting of a Cardano Constitution are set to redefine decision-making within the network, ensuring it remains adaptive and responsive to its community.
These developments could lay the groundwork for a significant price recovery for ADA. With a strong foundation and an active developer community driving innovation, Cardano may be on the verge of a new era of growth.
A Critical Moment for Cardano
As Cardano moves forward with its ambitious plans, the coming weeks could be crucial in determining ADA’s future trajectory. With the recent surge in developer activity and the ongoing implementation of the Chang hard fork, Cardano is positioned to potentially lead the next bullish phase in the crypto market.
Investors and enthusiasts alike should closely monitor ADA’s price movements and network developments, as the potential for a major breakout could make Cardano the talk of the crypto world tomorrow.
Disclaimer: This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.