Cardano (ADA) had a promising start to the week, with a 2% increase in the past 24 hours, bringing its trading price to $0.3725 on July 8. This rise in price has allowed ADA to recover all the losses it experienced on July 7, as investors’ sentiment towards the layer-1 token has shifted. Despite the overall bearish trend in the wider crypto market, with Bitcoin (BTC) and Ether (ETH) both experiencing drops in value, ADA has managed to rally.
One of the factors driving ADA’s price up today is the recent update from Cardano founder Charles Hoskinson regarding the progress of the platform and the upcoming Chang hard fork. During an Ask Me Anything (AMA) session on July 7, Hoskinson discussed the ongoing efforts and milestones achieved by Cardano. He mentioned that the Cardano Chang Hard Fork is almost ready, highlighting the completion of all elements of CIP 1694 as a significant accomplishment. This hard fork represents a crucial upgrade for the Cardano ecosystem and is expected to initiate the transition to the Voltaire era, the final stage of Cardano’s roadmap towards creating a fully decentralized blockchain ecosystem.
The historical performance of ADA also suggests the potential for a significant price rally ahead of the Chang hard fork. In 2021, ADA saw a substantial increase in value, rising by 130% from $1.35 to $3.10 within a month leading up to its last major upgrade. This performance has raised expectations that the upcoming Chang hard fork could have a similar effect on ADA’s price.
Furthermore, the growth of the Cardano network has also contributed to ADA’s upside potential. Over the past month, the number of active addresses on the Cardano blockchain has increased, indicating a growing interest in the platform. Additionally, addresses holding 10 million-100 million ADA have been on the rise, suggesting that large holders of ADA are confident in the token’s long-term potential.
In terms of technical analysis, ADA’s recent price rise is accompanied by a growing bullish divergence between its price and the relative strength index (RSI). This indicates strength in the current uptrend and may prompt traders to buy more ADA during local dips.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.