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Cardano Falls Despite Record Developer Activity — Can it Recover?

Last Updated January 24, 2024 12:59 PM
Nikola Lazic
Last Updated January 24, 2024 12:59 PM

Key Takeaways

  • Cardano has more in developer activity than any other blockchain but its native coin is down.
  • ADA has fallen by 33% since mid-December.
  • Chart analysis points out it could reach another low of $0.40.

Santiment, an analytics company, recently reported that Cardano continues to lead the cryptocurrency market in development activity. This indicator measures the volume of work done on a project’s public GitHub repositories, focusing on “events” rather than “commits”.

 

According to the data, Cardano is has had around 333 events in the past month. Following closely are Polkadot (DOT) and Kusama (KSM), jointly holding the second place with a score of 329.57. Ethereum (ETH), despite previously dropping out of the top 10, has regained its position in the ranking.

Despite that, the price of ADA has fallen by 33% since mid-December.

ADA Price Analysis 

From its low of $0.24 on October 19, the price of Cardano climbed nearly 185%  to a little under $0.70 on December 14. This uptrend saw ADA break above its significant horizontal range of between $0.24 and $0.40. 

daily chart
ADA is likely to retest $0.40.

This horizontal range could be the coin’s accumulation zone after the previous 92% downtrend ended. As the price consolidated, the new uptrend could have signaled the start of a new bull cycle for ADA. 

As the price is declining, it is likely headed for a retest of the former $0.40 resistance level. After that, it can continue moving up. We could see a minor rise as the B wave from an expected ABC correction in the short term. However, another low will happen before this correction competes. 

If this plays out, it would indicate that the first two sub-waves of a larger five-wave uptrend have been cleared. The $0.40 retest will dictate the future outlook, as we expect a bounce. But this possibility would be less likely if the price continues moving below it and enters the lower range again. 

But if it does make a bounce, we expect the start of another, stronger uptrend. This could bring the price of Cardano to $1 at first and then further beyond. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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