While September may have appeared relatively quiet for many assets in the crypto space, it was a period of bustling activity for Cardano’s (ADA) development team. This surge in action catapulted Cardano to the forefront of all crypto projects in terms of developer contributions.
According to data from the crypto analytics platform CryptoDep, Cardano secured the top spot in the development rankings among all blockchain teams. In September alone, it recorded an impressive 572 events in its GitHub repositories, as confirmed by data released on October 2.
This trend is not a new phenomenon; it was previously highlighted in August in a Messari’s report titled “State of Cardano Q2 2023” and has continued to persist throughout September.
Will the price respond to this increased activity, given its persistent decline from its all-time high?
After reaching an all-time high just slightly above $3, ADA embarked on a bearish phase, enduring an enduring downtrend. During this bear cycle, the price plummeted by a staggering 92% from its peak to its lowest point.
The first significant drop occurred on December 26 of the previous year when ADA fell to $0.24. Subsequently, there was a partial recovery, with the price climbing to $0.44. However, this upward trend was short-lived, as another downturn materialized on April 17, sending the price back towards its December lows.
This area holds tremendous significance, serving as a crucial horizontal support level that aligns with the initial point of the last substantial upward surge. Essentially, this price point marks the origin of the previous parabolic ascent and is currently undergoing a retest for support.
Considering the development of a five-wave pattern from its peak and the attainment of substantial support at this level, there exists a compelling possibility of witnessing a more substantial upward movement.
On the weekly chart, the Relative Strength Index (RSI) dropped to 33% on September 18, even lower than January when the price rested at the same level. The last instance of the RSI reaching these levels on a weekly timeframe occurred in March 2020, coinciding with the commencement of the broader bull cycle.
While these indicators may signal the inception of a bullish phase, the ultimate confirmation is still pending. This confirmation may manifest as an initial gradual rise, followed by an acceleration in momentum, ultimately culminating in a breakthrough of the $0.40 resistance level.
If this scenario unfolds, ADA could potentially be entering a new phase characterized by a parabolic surge.
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.