Cardano’s Active Addresses Surge
Cardano [ADA] recently captured attention with its latest upgrade earlier this month. Despite the initial lack of impact on price or activity, ADA’s active addresses have surged dramatically over the last three days, reaching their highest levels in months. This spike in activity suggests a delayed but significant reaction to the network upgrade.
An analysis of Cardano’s daily active addresses reveals a recent surge to its highest level in over five months. According to data from Santiment, ADA’s daily active addresses spiked to over 52,000 on 5th September. Although this number dropped to around 39,400 the following day, it was still the highest since May. By the end of trade on 7th September, the active addresses had declined further to approximately 31,600.
Despite these declines, this marks the first time in months that Cardano has seen such a strong surge in daily active address activity. The sudden spike in active addresses suggests growing interest and engagement within the Cardano ecosystem, which may be a delayed reaction to the recent network upgrade. While the initial impact of the upgrade was muted, this rising network activity could indicate that the improvements are beginning to resonate with users.
ADA’s Price Trend and Potential Reversal
Cardano has remained in a bear trend, but recent data shows signs of a potential reversal. An analysis of Cardano’s daily chart indicates that the asset is still in an overall downtrend, but it has seen some positive momentum in the last 24 hours. ADA closed the last trading session at around $0.32, reflecting a 3.4% increase. As of this writing, it is trading at approximately $0.33, with an additional 2.7% increase.
If Cardano can maintain this current upward trend, it will mark the first time in two weeks that the asset has posted consecutive gains of over 2%. Should this momentum continue, it could signal a potential return to a bull trend for ADA. An analysis of Cardano’s Relative Strength Index (RSI) shows that it remains below the neutral line, indicating that it is not yet in bullish territory. However, the RSI has moved closer to neutral over the past 24 hours, currently at around 46. A continued rise in RSI could further strengthen the case for a shift toward bullish momentum, indicating that Cardano may soon break out of its downtrend if positive price action persists.
Trading Volume and Market Dynamics
Recent analysis shows that Cardano’s (ADA) trading volume has consistently stayed in the $300 million range, with the highest volume reaching around $340 million. While this is a decent level of activity for ADA, higher volumes will be necessary for the price to break out of its current downtrend and maintain a sustained bullish trend.
A convergence of both rising price and volume would be crucial to solidifying a positive trend. With a corresponding increase in volume, any short-term price gains may be sustainable. Cardano’s trading volume was around $160 million as of this writing. This level of trading activity, while significant, needs to increase to support a sustained upward price movement.
Conclusion
Cardano’s recent upgrade has sparked a notable increase in active addresses, indicating growing interest and engagement within the ecosystem. While ADA remains in a bear trend, recent positive momentum and rising RSI suggest a potential shift towards bullish territory. However, for a sustained bullish trend, an increase in trading volume will be essential. The coming weeks will be crucial in determining whether Cardano can maintain its upward trajectory and break out of its current downtrend.
