- ADA’s active addresses showed that one key on-chain data responded to the upgrade.
- ADA remained in a bear trend.
Cardano [ADA] recently turned heads with its latest upgrade earlier this month. Despite the upgrade, the network experienced no immediate impact on price or activity. However, ADA’s active addresses have soared over the past three days, reaching the highest level in months.
Cardano will have more active addresses
An analysis of Cardano’s daily active addresses shows a recent increase to the highest level in more than five months. According to data from SantimentADA’s daily active addresses peaked to more than 52,000 on September 5.
Although this number dropped to around 39,400 the next day, it was still the highest since May. By the end of trading on September 7, active addresses had fallen further to around 31,600.
Source: Santiment
Despite these declines, this is the first time in months that Cardano has seen a strong increase in daily active address activity. The sudden spike in active addresses indicates growing interest and engagement within the Cardano ecosystem, which may be a delayed response to the recent network upgrade.
While the initial impact of the upgrade was limited, this increased network activity could indicate that the improvements are beginning to resonate with users.
The increase in active addresses could pave the way for greater utility and participation in the Cardano network in the coming weeks, signaling renewed interest in the platform.
ADA nearing a turnaround?
An analysis of Cardano’s daily chart shows that the asset is still in a general downtrend, but there has been some positive momentum over the past 24 hours.
According to AMBCrypto’s analysis, ADA closed the last trading session at around $0.32, reflecting an increase of 3.4%. At the time of writing, the stock is trading at around $0.33, with an additional 2.7% upside.
If Cardano can maintain this current uptrend, this will be the first time in two weeks that the asset has posted consecutive gains above 2%. Should this momentum continue, it could signal a possible return to a bull trend for ADA.
Source: TradignView
An analysis of Cardano’s Relative Strength Index (RSI) shows that it remains below the neutral line, indicating that the index is not yet in bullish territory.
However, the RSI has moved closer to neutral over the past 24 hours, currently around 46. A continued rise in the RSI could further strengthen the case for a shift to bullish momentum, suggesting that Cardano may soon break out of its downtrend if the rate is positive. action continues.
Cardano maintained the volume level of $300 million
Recent analysis shows that Cardano (ADA) trading volume has consistently remained around $300 million, with the highest volume being around $340 million.
While this is a decent level of activity for ADA, higher volumes will be needed for the price to break out of the current downtrend and maintain an ongoing bullish trend.
Realistic or not, here is the market cap of ADA in terms of BTC
A convergence of both rising prices and rising volume would be crucial to consolidate a positive trend. With a corresponding increase in volume, any price increases could be sustainable in the short term.
Cardano’s trading volume at the time of writing was approximately $160 million.
