Cardano Joins Top 3 in Developer Activity— How Will This Impact ADA’s Price?
Cardano's dev activity surges, making its the second largest. Will ADA's price follow?
Key Takeaways
- Cardano’s development activity surged, surpassing Ethereum.
- ADA’s price dropped 60% but could soon enter a bullish phase.
- If ADA faces resistance, a move further to the downside cannot be ruled out in August.
The crypto market’s mid-March downturn has deepened, with prices plummeting 25% from their peak.
The latest blow came on Aug. 5, when a sharp sell-off sent prices tumbling to levels not seen since February. Yet, a handful of blockchain projects have bucked the trend amidst this bearish backdrop.
Cardano (ADA) is among the few whose on-chain activity defied the broader market’s malaise. Despite ADA’s price taking a 60% hit since its yearly high of $0.80, the token’s Aug. 5 low of $0.25 may ultimately prove a turning point, marking the beginning of a new bullish phase.
Cardano’s Developer Activity
A recent update on Aug. 6 from Santiment, an on-chain market intelligence platform, observed significant shifts in development activity among top crypto projects.
According to GitHub submissions, Cardano has surged to third place in terms of development activity over the past 30 days, outpacing Ethereum by a significant margin.
With a score of 452.85, Cardano’s ongoing upgrades and projects are clearly gaining momentum. This is led by the anticipated Chang hard fork, which promises to bolster the blockchain’s governance and security.
As illustrated by the development activity chart, Cardano’s surge is evident, with the metric nearly doubling from its August 1 low of 129 to a high of 206.
Cardano’s achievement marks a significant milestone, underscoring its resilience and growth in the face of broader market downturns. Despite the prevailing bearish sentiment, Cardano’s development activity suggests a project that is continuing to build and innovate, laying the groundwork for future success.
ADA Price Analysis
Cardano’s price has experienced considerable volatility since its March 14 peak of $0.80, marked by a decline to $0.32 on July 5. A subsequent 42% rebound to $0.45 on July 17 was short-lived, as the price succumbed to another downturn, reaching a lower low of $0.27 on Aug. 5.
From a technical standpoint, the decline was initially perceived as a corrective Wave 2 within a larger five-wave upward impulse. However, the recent low has invalidated this scenario, suggesting that the bearish trend that commenced in March may have finally run its course.
A closer examination of the daily chart reveals that the Relative Strength Index (RSI) plunged into oversold territory, registering a reading of 26% – a level last witnessed on April 13. The price action on Aug. 5 was particularly noteworthy, as ADA bounced off descending support, rallying 23% to a high of $0.34.
The presence of a wick on the daily candle indicates that buyers are beginning to reassert themselves.
While further confirmation is required, the current price action suggests that ADA may be poised to enter a new bullish phase.
A break above the descending resistance would provide strong evidence for this scenario. Conversely, if ADA encounters resistance below $0.40, a move downside cannot be ruled out in August. As the market continues to unfold, it is essential to monitor ADA’s price action closely, as a potential trend reversal could be underway.
Cardano On-Chain Activity Surges Despite Price Spiraling – Can ADA Bounce Back?
