Cardano Sees Spike in Active Addresses, ADA Shows Recovery
Key Takeaways
- Cardano’s active addresses reached a five-month high following a network upgrade.
- The number of active addresses rose to over 52,000 but slightly declined in the following days.
- The ADA price shows early signs of recovery but remains in a downtrend.
- Cardano’s trading volume remains stable; however, higher volumes are needed to support a sustained price increase.
Cardano Shows Increased Network Activity After Upgrade
Cardano (ADA) recently implemented a significant network upgrade, which initially had no immediate impact on price or activity. However, in the past few days, there has been a noticeable increase in active addresses. On September 5, daily active addresses reached over 52,000, the highest level since May. Although the number dropped to around 39,400 the following day and further declined to approximately 31,600 by September 7, this still represents a remarkable increase compared to recent months.
Growing Activity Signals Rising Interest
The sudden increase in active addresses could indicate growing interest and increased usage of the Cardano network. This may be a delayed response to the recent upgrade, which might only now be resonating with users. If this activity continues, it could suggest rising adoption and usage of the platform in the coming weeks.
Price Action: Early Signs of Recovery?
Although Cardano remains in a downtrend, there have been positive price movements in the last 24 hours. The ADA price rose by 3.4%, closing the last trading session at around 0.32 USD. Currently, the price sits at approximately 0.33 USD, representing a further increase of 2.7%. If this trend continues, it could mark the first time in two weeks that ADA has posted consecutive gains of over 2%.
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Relative Strength Index (RSI) Indicates Potential Trend Reversal
An analysis of the Relative Strength Index (RSI), an indicator that measures the strength of price movements, shows that ADA is still below the neutral line. The current RSI value is around 46, meaning Cardano is not yet in a clear uptrend. However, if the RSI continues to rise, it could signal an impending trend reversal.
Trading Volume Remains Stable, But Higher Volume Needed
Cardano’s trading volume remains relatively stable around the 300 million USD mark, with the highest volume reaching about 340 million USD. However, a significant increase in volume would be necessary to support a sustained price rise. Currently, the volume sits at around 160 million USD. A rise in both volume and price could be crucial in solidifying a long-term uptrend.
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Our Assessment
Cardano’s recent network upgrade is showing early positive effects on network activity, indicating growing interest in the platform. While the ADA price remains in a downtrend, recent price gains and the increase in active addresses suggest a potential trend reversal. However, a sustained price increase will only be possible if trading volume also rises. It remains to be seen whether the recent developments will lead to a long-term recovery in the ADA price.
| Symbol | ADA |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Price | $0.88 |
| 24h % | -1.84 % |
| 7d % | -20.16 % |
| 30d % | -13.62 % |
| 60d % | 153.43 % |
| 1y % | 41.60 % |
| Market Cap | $31,633,697,162.00 |
| Max. Supply | 45,000,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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