Other than Bitcoin and Ethereum, the focus of the cryptocurrency market seems to be diverting towards Cardano (ADA). It is starting to receive renewed buoyant attention again as it shows strength following a recent bounce above its 20-day moving average. Most notably, data shows that in developer activity, Cardano has advanced greater than Ethereum, which is a critical metric in estimating a blockchain’s innovative potential. This shift in paradigm, accompanied by formidable fundamentals and impressive technicals, is stoking speculation that Cardano is poised for an outsized move and steep uptrend.
The Accelerated Developer Activity of Cardano: Its Most Underestimated Asset
Cardano’s impressive GitHub commit statistics give a further glimpse into its underlying strength. Recent statistics reveal that Cardano has achieved an astonishing 21,440 commits on GitHub in 550 repositories, which places it at the very top of the blockchain developers’ ecosystem. To put this into context, Ethereum, the decentralized applications giant, had 20,998 commits from 278 repositories.
The wide gap in the developer commitment further emphasizes the amount of work and creativity that is going on in the Cardano system and points towards ripe opportunities for advanced decentralized applications to be developed in the future. In the last week alone, 29 developers made 228 commits on Cardano’s side, while Ethereum had only 15 developers and 199 commits. These numbers reiterate growing trust in Cardano’s plans.
Technical Indicators Flash Green: A Potential Breakout Brewing
Analysts note increasing bullish momentum for Cardano. The cryptocurrency is currently trading at approximately $0.70, well above its 20-day exponential moving average (EMA) of $0.6764 and simple moving average (SMA) of $0.6640. Both moving averages have shifted in ADA’s favor and are now acting as short-term support levels. In addition, most short-term moving averages have switched to buy signals, which indicates upward price advancement. Even though long-term indicators such as the 100 and 200-day SMAs retain a bearish outlook, the overarching technical structure points to ADA being in the early phases of a breakout. This suggests a change in its price trajectory could be underway.
As we discussed previously, what now seems likely to happen is that Cardano founder Charles Hoskinson confirmed the addition of the Lace wallet and bridge scheduled for Bitcoin. He was also mentioning how efficient these updates could be, saying, “There’s already $5.8 billion in TVL from the Bitcoin side… If you get 5% or 10% of the supply, the TVL will be larger than Solana or Ethereum,” implying how greatly valuable the TVL was compared to the proposed Solana and Ethereum. This means that these cross-chain endeavors would generate a high level of liquidity into the system, strengthening the Cardano blockchain.
Eyeing any moves towards ADA’s bullish outlook is somewhat aided by the mixed low real momentum indicators that lean on the positive outlook. The RSI index suggests further price growth is possible without entering the overbought range and support level at 56.7 and providing bullish signals. Likewise, the middle range of 0.0118 of the MACD indicator also suggests the chances of positive deviation with ADA being able to breach the 0.74 USD resistance level and surge towards 0.80 USD.
On the opposing side, failing to keep above the short-term moving average would send sinking back into wave correction, targeting 0.61 USD with immediate ADA support at 0.66 USD.
ETF Speculation Intensifies: A Potential Catalyst for Growth
Speculation around the possible approval of spot exchange-traded funds (ETFs) ADA has recently heated up in the crypto space. The SEC is currently reviewing ETF applications from Canary Capital and Grayscale, with a decision deadline set for May 29th. Additional optimism stems from the recent appointment of Paul Atkins as SEC chair; he saw him as more crypto-friendly, leading to the increased likelihood of a positive decision regarding the pending ADA ETF applications. Approval of a spot ETF would dramatically increase institutional investment in Cardano, arguably catalyzing an increase in value.
Conclusion: A Promising Future Built on Strong Fundamentals
Along with strong developer activity, Cardano’s price with respect to its support range, innovative new features like Bitcoin bridge integration and Lace wallet’s advanced capabilities, and possible spot ETB approvals augurs well for the cryptocurrency’s future. Until the decisive move happens, the ever-watching market combined with the ecosystem expansion will fuel rapid crypto adoption and enhance the overall system’s value.
