- Cardano recently saw a significant 10% price surge, driven by anticipation of the upcoming Chang hard fork and notable network growth.
- Investor sentiment has been bolstered by these developments, along with a historical trend of price increases preceding major upgrades.
Chang Hard Fork and Network Growth Fuel ADA’s Price Movement
Cardano (ADA) experienced a significant boost in its market value recently, climbing 10.06% in a single day to trade at $0.3709. This notable surge marks the largest one-day percentage gain since January 10. The rally pushed Cardano’s market cap to $13.1987 billion, accounting for 0.63% of the total cryptocurrency market cap. Despite this gain, Cardano’s price remains 88.03% below its all-time high of $3.10 set on September 2, 2021.
Factors Behind the Rally
Cardano’s recent price increase is attributed to several key developments within its ecosystem. The primary driver appears to be the upcoming Chang hard fork, which has generated positive sentiment among investors. Charles Hoskinson, Cardano’s founder, provided an update on the progress of the hard fork during an Ask Me Anything (AMA) session. He announced that node 9.0, critical for the Chang hard fork, is nearly complete. This upgrade is expected to transition Cardano into the Voltaire era, which aims to achieve a fully decentralized blockchain ecosystem.
The anticipation of the hard fork has historical precedence for triggering price rallies. In 2021, ADA’s price surged by 130% leading up to its last major upgrade. Investors are optimistic that the Chang hard fork could similarly catalyze a significant rally.
Network Growth and Investor Sentiment
ADA’s price movement also reflects broader trends in the Cardano network. Data indicates substantial growth in the number of active addresses, rising from 21,560 on June 17 to 36,700 recently. Additionally, the number of new addresses has increased from 6,110 to 10,420 within the same period. This uptick in active users suggests a growing interest and confidence in the Cardano network.
Furthermore, large ADA holders (those with 10 million to 100 million ADA) have been accumulating more tokens, with the number of such addresses rising from 356 in early February to approximately 400 now. This accumulation trend underscores a strong belief in the long-term potential of ADA.
Market Context and Technical Indicators
The broader cryptocurrency market has seen mixed movements, with Bitcoin and Ethereum experiencing modest gains. Bitcoin’s market cap remains dominant at $1.115 trillion, representing 53.54% of the total cryptocurrency market cap. Ethereum holds a market cap of $363.880 billion, accounting for 17.46% of the total market value.
Technical analysis of ADA’s price also reveals a growing bullish divergence between its price and the relative strength index (RSI). This divergence, characterized by falling prices and rising RSI, indicates underlying strength in the uptrend, prompting traders to buy during local dips.
Cardano’s recent rally is fueled by positive developments within its ecosystem, particularly the upcoming Chang hard fork, alongside robust network growth and favorable technical indicators. As ADA continues to capture investor interest, its potential for further price appreciation remains strong, contingent on the successful implementation of its planned upgrades.
