Cardano Network Sees Surge in Activity Following Upgrade, Fueling Price Speculation
Cardano’s recent network upgrade has sparked a flurry of activity, leading to speculation about a potential surge in price. While the upgrade initially had little impact on the network’s performance or value, there has been a notable increase in active addresses in recent days, reaching levels not seen in months.
Rise in Active Addresses on Cardano’s Network
An examination of Cardano’s daily active addresses reveals a significant spike, reaching its highest point in over five months. Data from Santiment indicates that on September 5th, ADA’s daily active addresses surged to over 52,000. Although this number slightly decreased to approximately 39,400 the following day, it still represented a substantial increase compared to previous months. By September 7th, the active addresses had dropped further to around 31,600.
Despite these fluctuations, this surge in active addresses is a positive development for Cardano, hinting at a growing interest and engagement within the network ecosystem. This sudden uptick may be a delayed response to the recent upgrade, suggesting that users are beginning to appreciate the enhancements.
While the immediate impact of the upgrade was modest, the escalating network activity indicates that the improvements are starting to resonate with the community.
The uptick in active addresses sets the stage for increased utility and participation on the Cardano platform in the upcoming weeks, signaling a renewed enthusiasm among users.
ADA Showing Signs of Reversal?
An analysis of Cardano’s daily chart indicates that the asset is still in a downward trend, albeit with some recent positive momentum. According to CryptoCrypto’s analysis, ADA concluded the last trading session at approximately $0.32, marking a 3.4% increase. At the time of writing, it is trading around $0.33, up by 2.7%.
If Cardano maintains its current upward trajectory, it will signify the first instance in two weeks that the asset has recorded consecutive gains exceeding 2%. This sustained momentum could signal a potential shift towards a bullish trend for ADA.
An evaluation of Cardano’s Relative Strength Index (RSI) reveals that it remains below the neutral threshold, suggesting a lack of bullish momentum. However, the RSI has edged closer to neutral, hovering around 46 over the past 24 hours. A continued uptrend in the RSI could bolster the case for a move towards bullish territory, potentially leading Cardano to break free from its existing downtrend with continued positive price performance.
Cardano’s Trading Volume at $300 Million Levels
Recent data indicates that Cardano’s (ADA) trading volume has consistently remained in the $300 million range, reaching a peak of approximately $340 million. While this level of activity is commendable for ADA, higher trading volumes will be essential to break out of the current downward trend and sustain a lasting bullish momentum.
Converging a rise in both price and volume is crucial for establishing a positive trend. With an accompanying surge in volume, any short-term price gains may prove to be more enduring. As of now, Cardano’s trading volume stands at around $160 million.