Cardano Sees Five-Month High in Active Addresses After Upgrade

• Cardano has seen a significant increase in daily active addresses, reaching 52,000 last week, the highest level in over five months.
• Cardano’s ADA price is experiencing a minor recovery, trading at $0.3389, with consistently over $300 million trading volumes.

With the Chang hardfork upgrade earlier this month, the Cardano blockchain garnered strong attention in September, reported CNF. Despite Cardano entering the Voltaire era and moving towards decentralization with a user governance model, there was no immediate impact on the ADA price or the network activity.

However, per on-chain indicators, the Cardano daily active addresses have significantly increased in the last three days. The analysis of Cardano’s daily active addresses shows a jump to the highest levels in over five months. On-chain data provider Santiment showed that ADA’s daily active addresses surged to 52,000 last week on September 5.

Although this number has dropped majorly since then, it is still above 30,000 daily active addresses as of now. Despite recent declines, Cardano has experienced a notable surge in daily active addresses for the first time in months. This increase in activity suggests heightened interest and engagement within the Cardano ecosystem, potentially reflecting a delayed response to the recent network upgrade.

Although the immediate effect of the upgrade was minimal, the rising network activity may signal that users are beginning to respond positively to the improvements. Another positive indicator is the Cardano (ADA) trading volumes that have consistently hovered over $300 million, peaking at nearly $340 million. While this activity level is notable, increased trading volumes will be crucial for ADA to overcome its current downtrend and establish a sustained bullish trend.

Cardano (ADA) Price Action and Reversal Ahead

Cardano’s native crypto ADA has been subject to strong selling pressure amid the broader market volatility. The daily price chart for ADA shows that the asset is in an overall downtrend; however, it has been gaining some positive momentum recently. As of press time, Cardano’s ADA is trading 1.14% up at $0.3389 with a market cap of $12.185 billion.

With Bitcoin reclaiming more than $55,000 earlier today, the altcoins are also gradually catching up and gaining momentum. On the technical daily chart, Cardano’s ADA is forming the daily wedge pattern, thereby taking solid support at $0.312 levels, as reported by CNF. Despite multiple lower-price rejection candles, Cardano has managed to stay above this baseline.

During the last weekend, ADA experienced a notable rise, gaining 3.49% and 3.99% over two days. However, it faced rejection from its 24-hour high of $0.349. This resistance has pushed Cardano below the 20-day EMA, which now serves as a dynamic resistance. Despite this, a bullish divergence in the daily RSI between the double bottom at $0.312 suggests a potential bullish reversal. If Cardano successfully tests and breaks through the overhead resistance trend line, it could see a rise to $0.375, representing a potential upside of 10%, per the CNF report.